Unlike retirement plans, there’s no limit to how much you can put into an annuity. Many clients choose to hold multiple annuities — equity-indexed annuities are also a strong candidate for 401(k) and IRA rollovers.
A “hybrid” type of annuity, most often used to create a private pension. During the accumulation period, your money stays safe in the insurance company’s general account — not the stock market — while still participating in partial market gains. These gains lock in each year and can’t be lost.
The insurance company guarantees a minimum rate of interest during the accumulation phase, with periodic payments in a set amount — for a definite period, like 20 years, or an indefinite one, such as your lifetime or the lifetime of you and your spouse.