ARIEYELLOW
Mouseketeer
- Joined
- May 10, 2005
Could someone please explain to me exactly what an annuity is? I understand CD's but someone suggested one time that I get an annuity and I'm not quite sure of the difference in the two TIA
It's complicated. Perhaps the most important difference is the tax treatment.ARIEYELLOW said:Could someone please explain to me exactly what an annuity is? I understand CD's but someone suggested one time that I get an annuity and I'm not quite sure of the difference in the two TIA
There are dozens of different annuity designs - but all allow you to keep your money in as long as you want. The most common designs look somewhat like CD's. You will get a rate guaranteed for a period of time. Usually, the longer the time, the higher the rate. But you will pay penalties if you take out the money during that period.ARIEYELLOW said:I am assuming there is a fixed amount of time to leave your money in an annuity?