1. Immediate vs. Deferred:
   • Immediate Annuity: Payments begin almost immediately after you purchase the annuity.
   • Deferred Annuity: Payments begin at a future date, allowing your investment to grow before you start receiving payouts.
2. Fixed vs. Variable:
   • Fixed Annuity: The amount you receive is fixed and doesn’t change over time. This provides predictable, stable income.
   • Variable Annuity: The payments fluctuate based on the performance of underlying investments (like stocks or bonds). This carries more risk but offers the potential for higher returns.

Annuities are often used for retirement income, offering the security of knowing you’ll have a regular income stream, but they can come with fees, and the terms vary widely.