During which phase does an investor make payments into an annuity?

The accumulation phase is when an investor makes payments into an annuity. During this phase, the investor contributes funds to the annuity, which may be done through a series of payments or a single lump-sum payment. The money paid in does not generate immediate income but instead grows tax-deferred, accumulating value until the investor decides to begin withdrawals or conversions.

In type of annuity, the payments made contribute to the total value of the annuity, which can then generate income in the later phases of the product's life cycle. This phase is crucial because it determines how much the investor will have available for future distributions during the distribution phase. The growth phase refers to the period when the invested funds are growing, but it does not specifically refer to the contributions being made.

Understanding these phases helps investors make informed decisions about their financial planning and retirement strategies.