What Are Annuities?

Video Transcript

"Hi, my name is Bill Rae. I'm a licensed agent and I have been in the finance field for well over twenty years. The question is what are annuities. Excellent question. Annuities simply are an agreement between you the individual and most likely an insurance company. It is a contract. It states a beginning and an end. It allows for an explanation of what monies you are getting, when you are to get them back and how much you are to earn. Unlike investment such as stocks and bonds that can rise and fall and principals can be lost, an annuity will always return your principal if structured properly. So, what is an annuity? It's simply an investment vehicle between you and an insurance company and it is a vehicle where you can be assured you will not loose your principal if done properly. Again, eliminate the fear of annuity. Use the word contract when you sign a contract, you should know all the details. My name is Bill Rae and I'm helping you build wealth."