Vanguard offers investment packages for annuities that include fixed-deferred annuities, tax-deferred and annuities, and annuities designed for retirement income, states the company’s website. Some of Vanguard’s annuities offer payment for life, and the payments start 30 days from the date of purchase.
Vanguard offers its customers income annuities that provide stable sources of income for those who are in retirement, explains the company’s website. Also known as an immediate annuity, the income annuity secures a stream of income guaranteed for life in exchange for a portion of the customer’s future savings. Vanguard’s variable annuities offer guaranteed lifetime withdrawal benefits, which allows customers to withdraw specific percentages of their savings for the rest of their lives.
Annuities are contracts between companies, such as Vanguard, and customers in which annuity holders make lump-sum payments in return for regular disbursements of money upon purchase of the annuity or at some point in the future, explains Investopedia. The goal of most annuities is to provide annuity holders with retirement income that is tax-deferred as the funds accrue. Annuity holders choose when they want to receive the stream of payments, and like a 401(k), customers cannot withdraw the full amount of the annuity without penalty until age 59 ½.