Final answer:
Annuities are financial products that provide a fixed sum of money paid every year and offer an additional way to save for retirement. They can be both fixed and variable plans. Annuities are not investments with life insurance companies.
Step-by-step explanation:
Annuities are financial products that offer an additional way to save for retirement, providing individuals with a fixed sum of money paid every year. They can be bought in a lump sum or over time. Annuities are not investments with life insurance companies, as stated in option 1 of the question.
Option 2 is correct, as annuities offer an additional way to save for retirement aside from other retirement savings accounts that limit annual contributions, such as 401(k)s or IRAs.
Option 3 is also correct, as annuities can offer both fixed and variable plans. Fixed annuities provide a guaranteed payout, while variable annuities allow for investments in different funds to potentially provide a higher return.
Therefore, the correct answer is option 4: All the above.