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 ...

Generally, annuities are financial contracts that provide the purchaser with a guaranteed income stream. Regular payments or a lump sum are both ways to invest in annuities. In return, the institution ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Dr. Melody Bell is a personal finance expert, entrepreneur, educator, and researcher. Melody ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Roger Wohlner is an experienced financial writer, ghostwriter, and advisor with 20 years of ...

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 ...

After you retire, your income will mainly come from savings and Social Security. However, annuities provide an additional steady income stream to help you enjoy your golden years with greater ...

We recently wrote a piece showing how much income you can expect to receive every month from different types of annuities, including fixed, immediate income annuities and deferred income annuities.