A contract sold by insurance companies that may provide income for the rest of the individual’s life in return for a lump-sum or periodic payment to the insurance company. Annuities, like IRAs, are tax-deferred vehicles. The taxation on annuities when they are distributed are different from IRAs for “non-qualified” annuities.
CFP® certification is a voluntary certification granted in the United States by Certified Financial Planner Board of Standards, Inc. It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients. Individuals who become certified are required to complete continuing education.