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Immediate Annuities
How do I make sure I don’t outlive my money?
If you’re looking for a source of retirement income you can’t outlive, consider a type of insurance policy called an immediate fixed annuity. You purchase one with a lump-sum payment, and in return you get a promised amount of money at regular intervals, usually monthly, no matter what the financial markets do. (These plans differ from variable annuities, in which your payment depends on the performance of underlying investments.) In most cases, the payment for an immediate fixed annuity is guaranteed to continue as long as you live.
The key advantage of immediate fixed annuities is the protection they offer against outliving your money. That tends to bring considerable peace of mind. On the downside, the fixed payments offer no defense against inflation. For those reasons and more, you’re usually best off putting only a portion of your retirement savings into annuities.
The links below outline the ins and outs of annuities, and offer tips on deciding whether an immediate annuity is right for you.
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All About Annuities
A quick guide to the types, classes, benefits and limitations of these investment staples.
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Who Are They For?
Picking the right annuity depends on your age and investment goals. This site reviews at the pluses and minuses.
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Pros and Cons of Immediate Annuities
A cost-benefit analysis of fixed immediate annuities, a product designed to give you a quick, steady income.
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Bankrate.com Annuity Calculator
See how the choices you make today affect your annuity's final payout down the road.
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Immediate Annuity Calculator
Calculate the estimated monthly payments for an immediate annuity.
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Why Immediate Annuities Deserve A Second Look for Your Retirement
Don't let the bad rap generated by deferred annuities stop you from considering immediate annuities when you retire. They can have an important place in your retirement income portfolio. Read here for details. by Steve Vernon
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Planning Your Retirement: The Best Investments to Generate Income
Suppose you've done a good job investing and accumulating money in your IRA and 401(k) plan, and now you're deciding how to best deploy those assets to generate retirement income. Which investments might work best for you? Read here for insights. by Steve Vernon
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Jill On Money: 401Ks, Wills & Life Insurance
We started the show with a focus on retirement plans, with great calls from Ryan and Rena and follow up e-mails from Chip and Suzanne. You may not have heard, but a recent report said that 90 percent of Americans have seen their 401 (k) plan asset levels returned to 2007 dollar values. Of course...
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Using a Variable Annuity to Increase Your Retirement Income
Look beyond the bad press on variable annuities, and consider variable immediate annuities as a viable way to increase your retirement income security and protect against inflation. by Steve Vernon
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IRA and 401k Retirement Income: How You Can Get Both Predictability and Flexibility
It can make sense to use part of your retirement savings to buy an immediate annuity, and invest the remainder of your retirement savings for managed payouts. This strategy can give you the best of both worlds. Read here to learn more. by Steve Vernon
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5 Tips for Buying an Immediate Annuity
An immediate fixed annuity pays you a lifetime retirement income for the rest of your life, no matter how long you live and no matter what happens in the economy. Read here for five shopping tips on getting the best deal. by Steve Vernon
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IRAs and 401ks: Maximize Retirement Income with Immediate Annuities
Immediate fixed annuities deserve serious consideration from retiring boomers. They pay you a monthly income, no matter how long you live and no matter what happens in the economy. And an immediate annuity might generate more retirement income, compared to other retirement income generators. Read...
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An IRA and 401k Retirement Income Road Map
How do you pick a method for generating retirement income from your retirement savings? That depends on how you want to balance a number of objectives. To help you craft a plan that's all your own, here's a road map that shows you how to meet your retirement income goals. by Steve Vernon
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Jill on Money: Mortgages, Immediate Annuities and Questions for Financial Advisors
"Jill on Money" callers, e-mailers and tweeps asking great questions. We started with a bunch surrounding refinancing and mortgage pay downs. The cool thing is that there's no rule of thumb here--it's all about your specific situation. It seems everyone is worried about retirement account...
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7 Best Annuities to Guarantee Income for Life
Receiving a monthly check from the day you retire until the day you die sounds mighty appealing. But signing up for an immediate annuity also means locking up your money with an insurer for decades. How can you be certain the company will still be around? Here are seven of the highest-paying...
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