Have You Heard Of An Annuity?
In bad economic times, you will hear people talk about how good it is to invest in an annuity. In good economic times, people talk less about annuities. There are big differences between an annuity and a stock.
An annuity is not like a mutual fund either even though the underlying portfolio of an annuity can consist of all stocks.
The real difference is that an annuity is much safer than a stock or even a mutual fund or even a bond. However, each annuity is as safe as the insurance company that is behind it. People often invest in annuities when they think that stock market is too risky.