Should You Buy an Annuity? It Depends on These 3 Factors

You might already have an opinion about annuities. Maybe you're strongly for them, or strongly against them. There's also a good chance that you don't know much about them and you'd like to learn more.

Annuities have a purpose in an investment account but they're not a good fit for everyone. Here are four upsides and downsides about annuities that will help you decide if you could benefit from buying one.

An annuity is a contract between you and an insurance company. You fund your annuity with either a lump sum of money or in increments over time. In exchange for your payment, the insurance company will provide you with either your lump-sum payment back in the future (with interest) or a guaranteed income stream that you can start collecting either immediately or at a later date .

Source Fool.com