Annuities are an insurance product popular with individuals as part of their retirement income strategy.   An annuity is a large chunk of cash that invested, helps to create a monthly flow of income for a fixed period or for life. They can be used to help protect your savings as well as increasing your income.

There are basically two types of annuities:

Immediate also called income. With the immediate annuity, you begin receiving payments immediately after making your investment. The deferred annuity accumulates income for a later payout when they can be converted to immediate annuities for payout.

The annuity can also be fixed or variable rate.

The fixed annuity offers a guaranteed rate of return for a certain number of years. The fixed annuity is similar to a certificate of deposit. The variable annuity is tied to the value of the underlying investments and can have the risk of market gain or loss. Fixed annuities are often chosen by the more conservative individual or someone closer to retirement. Variable annuities are often selected for those with a longer time until retirement or until needed because of other investments.

The size of your payment depends on several factors including the amount of the annuity and the length of the payout.

New strategies have recently been approved by the government. It is now acceptable for a specified amount of an investor’s 401k account to be placed into an annuity.

Annuities currently have a much better interest rate than a certificate of deposit or a money market account. There has never been a better time to invest in annuities than right now.

Mallory-Tate Insurance Services, LLC.  can discuss your options, answer you questions, and help you understand how an annuity can benefit you.


The consultants at Mallory-Tate Insurance Services, LLC. will assist you in determining which annuity fits best with your retirement strategy. Call today – 334-793-6967.