gif (1280 bytes) Q. What are the different types of annuity products?
A. The annuity products available vary in terms of (1) how money is paid into the annuity contract, (2) how money is withdrawn, and (3) how the funds are invested. Single premium annuities. Suppose you have a lump sum from a retirement plan payout. You can purchase a single premium annuity, in which the investment is made all at once. The minimum investment is usually $5,000 or $10,000. Flexible premium annuities. With the flexible premium annuity, the annuity is funded with a series of payments. The first payment can be quite small. Immediate annuity. The immediate annuity starts payments right after the annuity is funded. It is usually funded with a single premium, and usually purchased by retirees with funds they have accumulated for retirement. Deferred annuities. With a deferred annuity, payouts begin many years after the annuity contract is issued. You can choose to take the scheduled payments either in a lump sum or as an annuity i.e., as regular annuity payments over some guara
