Annuities - John A. Barton Insurance - Ann Arbor, Michigan - Michigan Center, Michigan | John A. Barton Insurance -Insurance Company - Ann Arbor, Michigan - Michigan Center, Michigan

1. An annuity is a financial product that provides a steady income stream, typically used for retirement purposes. You pay a lump sum or make payments over time, which then gets paid back to you, often after retirement, either in a lump sum or through periodic payments.

Annuities can have various fees, including administrative fees, mortality and expense risk charges, and fees for additional features like riders.

1. In Michigan, common types of annuities include fixed annuities (offering a guaranteed payout), variable annuities (where payouts depend on the performance of investments), and indexed annuities (tied to a market index performance).

1. Depending on the type of annuity and its terms, any remaining value can be passed on to your beneficiaries.

1. The growth of annuities is tax-deferred. Taxes are paid when you withdraw money or receive payments, which are taxed as regular income.

1. Early withdrawals (before age 59½) may be subject to penalties and income taxes. Some annuities allow limited access without penalties, but this varies by contract.

1. Yes, since variable annuities are linked to market performance, there is a risk of loss if the underlying investments perform poorly.

1. In Michigan, annuities are generally protected from creditors to a certain extent, but laws and limits vary, so it's important to consult with a legal advisor.

It depends on your financial goals, risk tolerance, and retirement plans. It’s advisable to consult with a financial advisor to determine the best type of annuity for your situation.

Annuities can be purchased through insurance companies, financial advisors, or brokers. It’s important to research and compare different options and consult with a financial professional.