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Annuities
An annuity is a contract between two parties, the issuer and the
annuitant. The issuer agrees for a stipulated premium to make (fixed
or variable) payments to the annuitant at defined intervals starting
on a certain date and lasting a defined length of time.
Annuities are distributed by insurance companies, and are commonly
formed by converting a pension or retirement fund (i.e. an RRSP
or LIRA contract) into an annual income.
For instance, an RRSP account may be converted into an annuity
at age 69 as an alternative to investing into a RRIF account.
W.P.G. can help you determine your annuity needs, and whether or
not an annuity might be an effective planning product to fit your
needs.
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