Annuities

An annuity is a contract between you and a life insurance company. You invest a sum of capital and the company provides you with a steady income for a fixed term or for the rest of your life. The insurance company invests the money and returns to you both a portion of your capital as well as the interest earned. The payments may be at a fixed interest rate (Fixed Annuity) or a variable rate (Variable Annuity). The insurance annuity usually offers tax deferral benefits as well.

This is a popular alternative for Registered Retirement Income Funds, especially for people in their later years who no longer want to spend excessive amounts of time tracking their portfolio. 


Continue to...
     Mutual Funds
     GICs
     Segregated Funds