What is an Annuity?

• An annuity is a financial product designed to provide a steady stream of income, typically used for retirement planning. 
• It is a contract between an individual (the annuitant) and an insurance company. 
• The individual pays a lump sum or a series of payments, and in return, the insurer promises to make regular income payments—either immediately or in the future.
• Annuities are often used to ensure lifetime income, protect against outliving savings, and offer potential tax-deferred growth.

• Payments begin right away (usually within one year of purchase).
  Funded with a lump-sum premium.
  Ideal for retirees seeking immediate guaranteed income.
• Example:
  You invest $200,000 in an immediate annuity and start receiving $1,000 per month for life starting next month.

2. Deferred Annuity

• Payments begin in the future, allowing the investment to grow tax-deferred until withdrawals start.
• Suitable for long-term retirement planning.
   

There are three main types of deferred annuities based on how returns are determined:

1. Fixed Annuity

Provides a guaranteed interest rate and predictable income.
Low risk and stable, similar to a bond.

Example:
A fixed annuity offers a 4% guaranteed annual return for 10 years.

2. Variable Annuity

Returns are linked to investment performance (similar to mutual fund-like subaccounts).

Higher growth potential, but market risk applies.
Income can fluctuate depending on market conditions.

Example:
Your variable annuity invests in stock and bond funds — returns depend on market performance.

3. Indexed Annuity (Fixed Indexed Annuity)

Offers growth linked to a market index (like the S&P 500) with downside protection. 

Provides a minimum guaranteed interest plus potential for higher returns if the index performs well.

Balances security and growth potential.

Example:
Your annuity earns ☓ % if the S&P 500 rises, but never loses money if the market declines.

More details about Annuities:

https://www.investopedia.com/terms/a/annuity.asp

Best annuity companies in 2025 and what they offer:

https://www.bankrate.com/retirement/best-annuity-companies/#how-much-does-an-annuity-cost

Nationwide New Heights® Select fixed indexed annuity: https://www.nationwidenewheights.com/

Athene Ascent Pro 10 Bonus:

https://www.athene.com/producer/products/ascent-pro-bonus