Formerly known as First Trust Company of Onaga
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Annuity Policy


An annuity is an insurance product in which the investor makes a lump sum payment or series of payments as a means of saving for retirement. Then, later, the investment makes a lump sum distribution or series of regular distributions to the investor.   


What is an Annuity?

An annuity distributes fixed stream payments to individuals, usually as income for people who are retired. Financial institutions invest funds from individuals and then issue payments at a later date. This was meant to provide consistent income to those who are retired and to eliminate fears of outliving our own assets. Annuities are also created to transfer large sums of money into a steadier cash flow. 


Annuities are flexible upon creation, structuring themselves according to a variety of factors.  Annuities can distribute payments for the remainder of a retiree’s life or can be used to pay out funds over a specific time.  Variable annuities allow the individual to receive greater future cash flows if the investments of the fund are successful or smaller payments if not successful.  Fixed annuities distribute periodic, consistent payments.  Those seeking a stable retirement income often buy a retirement annuity. 


How to Buy an Annuity Policy

Investors are encouraged to do adequate research or contact a broker/financial advisor, attorney or CPA to determine if annuities are an appropriate investment. Once you have determined that an annuity is suitable for you, it can be purchased with your Self-Directed IRA or other retirement account at Mainstar Trust. Click here to discover how to use a Mainstar Trust account to invest in an annuity policy.