An annuity is a financial product that provides a stream of income over a set period. Annuities are often used in retirement planning as a way to generate income from a lump sum investment.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Amanda Jackson has expertise in personal finance, investing, and social services. She is a ...

Annuities are investment contracts issued by financial institutions like insurance companies and banks. When you purchase an annuity, you invest your money in a lump sum or gradually during an ...

An annuity is a financial product that provides a stream of income over a set period. They’re often used in retirement planning as a way to generate income from a lump sum investment. However, there ...

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If you put pretax dollars into an annuity and it makes investment gains, all of your withdrawals will be taxable at your ordinary income tax rate.

Ordinary annuities pay at the end of a period. Annuities due pay in advance or at the beginning of a period. Because of the difference in payment timing, the present value of an annuity due will be ...

The key difference between an ordinary annuity and an annuity due is when payments are made, which can affect the overall value. Ordinary annuity payments are made at the end of each period. Annuity ...