Three Main Types of Annuities

Greco Brokerage offers three main types of annuities.

With an Immediate Annuity, a lump sum of money placed at the insurance company for a stipulated interest rate and that money is passed to you monthly for a certain amount of years. Purchasing an immediate annuity is like buying a monthly pension check, you pay an annuity provider a lump sum in exchange for a guaranteed income stream and your monthly payments usually start within 30 days of handing over your money.

A Fixed Annuity can work in various ways. It is similar to CDs but grows tax deferred at a fixed interest rate for a stipulated period. A fixed annuity is the most conservative, as both your principal and your returns are guaranteed, meaning you know exactly how much money you will make when you buy it.

An Indexed Annuity is credited based on a specified equity index or particular index on which the rate of returns are based. While less conservative than a fixed annuity, your principal is guaranteed with an indexed annuity. However, your returns will fluctuate depending on the index or indexes you choose and how market movements affect the indexes. Your account will never be credited with a negative return in any year of your contract.

Please note, these Annuities are not FDIC insured.