There are two basic types of annuities: immediate and deferred.
With an immediate annuity, you exchange a lump sum for an immediate income. This is often used as retirement income. All, or part of, the income received from a unit linked annuity (variable annuity) fluctuates based on the performance of the fund or funds you have selected.
A deferred annuity is an accumulation plan that provides the option of an income annuity in the future. In Canada unit linked or variable annuities are called segregated funds or seg funds. They are similar to mutual funds and their value will increase or decrease based on performance. Since they are issued by insurance companies, they do offer maturity and death benefit guarantees. Some offer the resets or the locking in of maturity guarantee to protect investment gains.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local Retirement Planner, you could start with a Google search. For example, if you search for: retirement planner Halifax or retirement planning Halifax, my name, along with several others, will come up. You can use the same method to find Retirement Planners in your community.
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With an immediate annuity, you exchange a lump sum for an immediate income. This is often used as retirement income. All, or part of, the income received from a unit linked annuity (variable annuity) fluctuates based on the performance of the fund or funds you have selected.
A deferred annuity is an accumulation plan that provides the option of an income annuity in the future. In Canada unit linked or variable annuities are called segregated funds or seg funds. They are similar to mutual funds and their value will increase or decrease based on performance. Since they are issued by insurance companies, they do offer maturity and death benefit guarantees. Some offer the resets or the locking in of maturity guarantee to protect investment gains.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local Retirement Planner, you could start with a Google search. For example, if you search for: retirement planner Halifax or retirement planning Halifax, my name, along with several others, will come up. You can use the same method to find Retirement Planners in your community.