The income from an annuity depends on several factors including your age, the amount invested, current interest rates, and the type of annuity. For example, a $300,000 immediate annuity could provide approximately $1,834 per month for a 65-year-old woman. Generally, the older you are when you start receiving payments, the higher your monthly income will be.

This depends on the type of annuity and options you choose. Many annuities offer death benefits that pay your beneficiaries. You can also choose joint-life options that continue payments to your spouse. Some annuities guarantee payments for a certain period (like 10 or 20 years) regardless of when you pass away.

Annuities are backed by the financial strength of the insurance company that issues them. They are regulated by state insurance departments and often protected by state guaranty associations. Fixed annuities are considered very safe as they provide guaranteed returns, while variable annuities carry market risk.

Annuity fees vary by type and company. Common fees include management fees (typically 1-3% annually), surrender charges for early withdrawals, and fees for optional riders. We believe in complete transparency and will clearly explain all fees before you make any decisions.

Most annuities allow you to withdraw up to 10% annually without penalties after the first year. However, larger withdrawals may be subject to surrender charges, especially in the early years. Some annuities also provide access for emergencies like nursing home care or terminal illness.

Annuities grow tax-deferred, meaning you don't pay taxes on growth until you withdraw money. If purchased with after-tax dollars, only the growth portion is taxed as ordinary income. If purchased with pre-tax retirement funds, the entire withdrawal is taxable.

Immediate annuities start paying income within a year of purchase, making them ideal for those already retired. Deferred annuities accumulate value over time and begin payments at a future date, making them suitable for those still working and planning for retirement.

Annuities are best suited for people who want guaranteed income in retirement, have maximized other retirement accounts, and are concerned about outliving their money. They're particularly valuable if you don't have a pension and want to create your own guaranteed income stream.