Earn fixed, guaranteed income with a retirement annuity plan. With the ability to structure these investments into different kinds of instruments, annuities are a flexible and reliable investment strategy used by many.

  • Fixed stream payments

    Receive consistent annuity income payments.
  • Flexible structures

    Annuities can be structured in a few ways.
  • Reliable investment

    The many types offer a truly personalized experience.

What is an Annuity?

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.

How do annuities work?
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.

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Those seeking a stable retirement income often buy a retirement annuity.

Types of Annuity

Annuity vs. Life Insurance Policy

Annuities Life Insurance
Periodic distribution throughout lifetime Distribution to beneficiaries after death
Remaining Death Benefit taxable Death benefit tax free
Protects against outliving funds Protects against premature death

How to Purchase an Annuity Contract

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 below to discover how to use a Mainstar Trust account to invest in an annuity policy.