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Guide to Annuities: Types, Payouts and Expert Q A Annuities provide a way to potentially accumulate wealth, defer taxes, preserve principal and ensure a reliable income stream in retirement Annuities offer retirees the opportunity to transfer the risk of their retirement income to an insurance company
How Do Annuities Work? Annuity. org Explains How Do Deferred Annuities Work? Deferred annuities accumulate value on the premium or premiums paid before converting the contract’s value into income payments These products work differently depending on how the annuity’s value accumulates The interest that deferred annuities earn has the advantage of tax deferral
How to Buy an Annuity: A Step-by-Step Guide Annuities are generally bought through an insurance company You can also buy them from a brokerage firm, mutual fund company or bank