Annuity

Introduction
Annuities are one of the many ways to make $.  An annuity is a monthly payment from an insurance company after you give them a down payment.  They have a long history in the U.S. and other countries.  There are several types of annuities.  There is sum risk involved when buying annuities.

History
Annuities started in ancient Rome!!!  People that bought annuities got paid for a # of years or a lifetime.  A Roman man named Ulpianis created a way to figure out how long buyers would live.  Terms of contract and interest rates were determined by how long the sellers thought buyers would live.  This helped sellers maximize profits and minimize risk.  Annuities were used 4 wars, public buildings, church, and community investments.

The first annuities in the United States were in 1759.  They were created by a Presbyterian corporation.  It was for widows and children.  Retired ministers and orphans were paid by the annuities.  In 1776 sum annuities were created 4 soldiers and their families.  In 1812 a company in Pennsylvania sold annuities to the public.  In 1905 Andrew Carnegie created annuities for teachers.  In 1935 Social Security was created.  It is a lifetime annuity for workers in the U.S.  There are many different annuities in the U.S.  Consumers own 1 trillion $ worth of annuities!

Types of Annuities
There are 2 main types of annuities.  They are immediate and deferred.  They can be variable, fixed, equity-indexed, or longevity.

Main Types
Immediate: It lasts 4 a lifetime or several decades.

Deferred: The payee gets paid at a later date.

Sub-Types
Variable: The payment is based on the performance of investments.

Fixed: The payment is always the same.

Equity-Indexed: It is a combination of fixed and variable.

Longevity: This is 4 retirement.  You must be 80 years old to receive payment from this annuity.

Annuities in Other Countries
Sweden annuities are linked to investments.  They come from the government. Canadian annuities interest rates are 6.7.  The U.S. interest rates 4 annuities is 5.5% and they are linked to investments.  Holland interest rate is 6%.  They combine savings and payout features in the annuities.  Japan doesn't have a lot of annuities because it has good pensions.  Australia interest rates are 12%!!!!!!!

Risks
Illiquidity: To get back your principal you have to wait.  Once you are able to get it, you have to penalties.

Early Death: If you die early you won't get that much $.

Company Risk: Make sure you get your annuity from a good company so you can keep getting paid.

Inflation: The value of the payments will drop as inflation rise.

Conclusion
Annuities have a long history.  They have been around 4 over millennium!!!  There are many different types. Annuities exist in many different countries.  There are several risks involved with having annuities.  You should buy annuities if it fits your investment strategy.  

References
http://www.investopedia.com/terms/a/annuity.asp
https://en.wikipedia.org/wiki/Annuity
https://www.annuity.org/annuities/history/
https://en.wikipedia.org/wiki/Annuity_(European)
http://www.telegraph.co.uk/finance/personalfinance/pensions/9932750/Where-in-the-world-can-you-find-a-good-annuity.html
https://www.immediateannuities.com/immediate-annuities/6-annuity-risks-and-how-to-avoid-them.html