Annuities: You’ve heard of them, but what exactly are they?
An annuity describes a variety of different financial products. What they have in common is that they pay out a sum over money over a period of time—typically years, or even over the course of a lifetime. Annuities are often considered a great choice for those who need a steady, predictable source of income, but there is some variation in how steady that income is.
You can start receiving money from your annuity immediately, or you can squirrel it away on a tax-deferred basis for decades until you choose before you start receiving benefits. Both kinds of annuities have their place—immediate annuities are a popular choice for soon-to-be retirees, while deferred annuities are more popular with those who want to let their investment grow over time.
There’s a lot more to annuities than this, but those are the basics. Sound interesting? Contact Us, and let’s talk to see if Erie Insurance retirement products can fit into your long-term investment strategy.
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