There is quite a bit of confusion about annuities. Many people fail to understand what they are, and because of there fear they never looking into this investment idea as a possible option. This is for good reason, the details can become rather complicated for those who do not know much about the financial world. The idea of having a practically guaranteed return on an investment sounds great for many people, and for some it is, but it is important that they are fully understood. Like any other major financial decision it is essential to have all of the details before one invest a significant amount of money.