Annuities are a popular choice for investors who want to receive a steady income stream in retirement.

It is a tax-deferred investment similar to the Individual Retirement Account (IRA).

You make a single payment to an insurance company or mutual fund which sells you the annuity. They will invest your money into a fixed return investment. They will pay you a fixed ammount from the interest generated.

You decide how much to invest. There is no limit like an IRA.

You select the time period over which you wish to receive the payouts.

You only pay tax on the money when you get a check from the annuity.