What Is an Annuity? - TheStreet Definition

Dictionary of Financial Terms

An annuity is a retirement vehicle sold by insurance companies that provides the benefits of tax deferral and protects your principal. It sounds really great, and in some respects it is. But the costs of annuities can be exceptionally high -- so high that annuities often make poor investments. For a primer on annuities, click here.

Definitions of Financial Terms