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An annuity is a financial product designed to provide a series of payments over time, typically used for retirement income. Its primary characteristics include the accumulation phase, where funds grow, and the distribution phase, where payments are made to the annuitant. Annuities can be fixed or variable, determining whether payments remain constant or fluctuate based on investment performance. Additionally, they may offer features like death benefits and surrender charges, impacting their overall value and flexibility.

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An annuitant-driven annuity is a type of annuity contract that primarily relies on the life expectancy and decisions of the annuitant, the individual who receives the annuity payments. This structure allows for tailored payment options based on the annuitant's age, health, and preferences, often resulting in a more flexible payout schedule. It contrasts with other annuity types that may be more rigid or based on predetermined criteria. Essentially, the annuitant's characteristics and choices shape the terms and benefits of the annuity.


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If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.


What gains more interest an ordinary annuity or an annuity due?

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The option to get annuity every month is called monthly annuity.


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Can you lose money with an annuity?

Yes, it is possible to lose money with an annuity if the investments within the annuity perform poorly or if there are high fees associated with the annuity.


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What characteristics are only found in primary succession?

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How can you withdraw money from annuity?

Your annuity policy document should have all the withdrawal provision detailed for you. If not contact the company you have the annuity with and they can give you instructions. Before you withdraw from an annuity be aware of the tax treatment of your annuity withdrawals.


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