Many people have accumulated significant sums of money for retirement. When they retire, the next concern is to never run out of money. An immediate annuity can eliminate that concern by providing a monthly income for life. Regardless of how the markets perform, annuity holders will receive a monthly income for life.

With future tax rates uncertain, deferred annuities have become popular. An investment in a deferred annuity grows tax-free until the money is withdrawn. Insurance companies provide these products. Some investment houses have teamed up with insurance companies to offer annuities that pay no commission and are managed by an investment adviser like Fidelity Federal Planning Corporation. These type of annuities have lower fees and no surrender charges.