This week, Annuity Alliance is going back to the basics – the ABCs of annuities! What do each of the letters stand for? Why don’t you find out below!

• A is for annuity, which keeps us far from woe
• B is for beneficiary, where one day the money will go
• C is for contract, the policy the owner files away
• D is for deferral, delaying the taxes you pay
• E is for exclusion ratio, or the income that is tax-free
• F is for fixed, where safety of principal is key
• G is for guarantees, that investments never provide
• H is for the rich history which annuities have on their side
• I is for interest accrued every year
• J is for joint life, meaning a spouse need not fear
• K is for knowledge, annuities are for the wise consumer
• L is for liquidity, most annuities have it (it’s not just a rumor)
• M is for money, annuities let you keep more on your plate
• N is for NAIC, providing oversight from all fifty states
• is for obligation, a promise you’ll not be caught unaware
• P is for principal (which is protected from bears)
• Q is for qualified, even IRAs may hold an annuity
• R is for risk which annuity owners avoid through acuity
• S is for safety, from stock market loss
• T is for tangible, annuity dollars are real, not dross
• U is for unique, an annuity’s retirement role no can dismiss
• V is for value (an annuity brings each owner much bliss)
• W is for withdrawal; deferred annuities offer access to cash
• X is the line we sign – your signature is right after the dash
• Y is for yearly, when annuity interest is credited
• Z is for zero, the odds your annuity will ever be discredited

Now that you know your annuity ABCs, next time won’t you… learn more with an Annuity Alliance financial professional! Need to connect to one in your area? Contact Annuity Alliance today!

This article is distributed by the National Association of Fixed Annuities.