By Intelligent Speculator at Seeking Alpha
I recently spent an entire evening talking to a good friend of mine about annuities. Why? Because his father was considering buying one, as he has just retired, and while he has a decent amount of savings, the idea of having a cash flow for life is certainly appealing. He is far from the only one. Annuities have been gaining popularity very quickly in recent years, and in many ways, they can be compared to dividend portfolios, although they do also have important differences. Let’s take take a look at a few questions that the potential had:
What Is An Annuity?
An annuity is a financial product often purchased by a retail investor that will guaranteee an income flow, usually for his or her entire life. That income can either be fixed over time or can become tied to factors such as inflation, stock market returns, etc.