Annuities
What is an annuity?
An annuity is an agreement or contract between you and an insurance company that lets you put money away for retirement, so you can get a guaranteed1 regular "paycheck" after you retire. Annuities grow tax-deferred until they start paying you an income. You contribute to an annuity – either as a lump sum, or in several payments over time – in order to get regular payments in the future, and for the rest of your life. As a tradeoff, annuities come with less liquidity than other investments.2 It's smart to choose a company like Northwestern Mutual, with its exceptional credit ratings and 160 years of service, to guarantee these payments.