Annuities: Part 1

We are going to talk about annuities in this blog.  I chose annuities because I frequently get questions about them.  That is, “are annuities bad?” or, “what is an annuity?”. Each question brings a different answer. 

When discussing annuities, it is important to make distinctions in the different types of annuities.  In fact, there are eight different types of annuities.  Our discussion has gotten more complex as all eight types of annuities have their own unique set of properties inherent to them.  As you can imagine they all come with different costs and benefits, which can make deciding their value a balancing act.  A balancing act because each and any one may fit a particular financial circumstance at a given time.

Albany, New York skyline

 The eight types of annuities are as follows: 

  1. Single Premium (SPIA’s)
  2. Delayed Income Annuity (DIA)
  3. Qualified Longevity Annuity (QLAC)
  4. Fixed Annuity (FA)
  5. Fixed Index Annuity (FIA)
  6. Structured Annuity
  7. Variable Annuity (VA); and
  8. Equity Indexed Annuity (EIA).

The most commonly encountered annuities, from my experience, are the variable annuity, fixed annuity, and fixed index annuity.  As practitioners we first look at a person’s financial snapshot and then determine what investment/s is needed to give the best potential for reaching their financial goal/s.  Annuities can play a role in this process, and quite often they do.


Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Variable annuities are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained from a financial professional. Be sure to read the prospectus carefully before deciding whether to invest.