Frequently Asked Questions

Annuities are, in essence, insurance contracts between the annuity owner—called the annuitant—and an insurance company. An annuity is an agreement to deposit a large sum of money with the insurer that they’ll invest on your behalf and then return to you through regular repayments.

Fixed annuities, one of the most basic types of annuities, provide the owner a guaranteed income stream during retirement in exchange for insurance premiums.

Variable annuities have two distinct phases: the accumulation phase, and the payout phase.

Indexed annuities offer interest rates calculated using stock market price index.

Investors can also evaluate annuities in terms of how their payout phases are structured.

While annuities can be useful in very specific forms and situations, Fisher Investments generally thinks they rarely contain features that truly benefit investors. The right annuity under the right circumstances, however, could be a beneficial retirement investment.

A rider is an additional term added to the contract of an annuity. While riders may offer additional flexibility or security, the benefits come with added fees and risks.