Are There Different Types of Annuities?

There’s two ways to have an annuity. There’s a single large lump sum payment, your entire accumulation of your 401K can be placed into an annuity. So, you can have guaranteed lifetime income. Or if you’re young enough, you can start paying monthly to accumulate a large sum for your retirement. The bottom line is, is that either way will give you guaranteed lifetime income. It’s just how you get there and where you are in this point in life.