Sentences with phrase «with immediate income annuities»

With immediate income annuities you begin receiving payments immediately after purchase, whereas with deferred income annuities you can choose to begin receiving payments at a date much later on.

Not exact matches

Fortunately, the type of annuity you're asking about — an immediate annuity — is (by annuity standards at least) the easiest to understand and, to my mind the type with the greatest potential for helping people who want more guaranteed lifetime income than Social Security alone will provide.

«Lumping immediate annuities with all the other types is rather disingenuous,» said Wade Pfau, professor of retirement income at The American College of Financial Services and director of retirement research at McLean Asset Management in McLean, Virginia.

New low - cost deferred variable annuities «deserve to get more respect,» insisted Pfau, but he singled out the immediate annuity — also called an income annuity or a life annuity — as packed with the most potential because it offers «a ton of benefits to consumers.»

But he singles out the immediate annuity — also called an income annuity or a life annuity — as packed with the most potential because it offers «a ton of benefits to consumers.»

The scenario I've described pretty much explains how an immediate annuity — or an income or payout annuity as it's sometimes known — works, with some important differences.

Of course, despite research showing that immediate annuities are an excellent way of generating lifetime income, many people want nothing to do with them.

In fact, there are some elements of an immediate annuity — aka an income annuity — that you simply can't duplicate on your own or for that matter even with the help of an adviser.

But if you really want to turn a portion of your nest egg into something that approximates a pension — a specific amount of money you can count on month in and month out for the rest of your life — then I suggest you suspend your wariness about annuities long enough to at least consider a type of annuity that's easier to understand, less prone to the abuses that are too often associated with annuities and is very efficient at turning savings into assured lifetime income — namely, an immediate annuity.

The upshot, though, is Warshawsky concluded that while an annuity didn't always outperform systematic withdrawal, an annuity provided more inflation - adjusted income throughout retirement often enough (with little risk of ever running out) so that «it is hard to argue against a significant and widespread role for immediate life annuities in the production of retirement income.»

Assuming the idea of getting more assured income with an immediate annuity appeals to you, you still don't want to put all, or even most, of your savings into one.

As with an immediate annuity, you turn over a lump sum to an insurer, but you don't actually start collecting income until later in life.

But if you'd feel better going into retirement with more steady and reliable income than just what Social Security and any pension will provide — or if you'd like more assurance that you won't come up short in the future — then an immediate or longevity annuity just might be worth considering.

The investment options may provide you with potentially more income than immediate fixed annuities, but your income payments will be subject to market fluctuation.

Thus, the only type of annuity that allows the insurance company to keep the undistributed balance of the investment when the owner passes away is a lifetime immediate income annuity account with no period certain.

When you buy an immediate annuity, you're essentially buying an insurer's promise to provide you with guaranteed income for life.

Indeed, immediate variable annuities are an odd beast: As with an immediate fixed annuity, you hand over a lump sum to an insurance company in return for lifetime income.

You are strongly urged to consult with financial planning, tax, and legal advisors to determine if a fixed rate annuity, immediate annuity, deferred income annuity or qualified longevity annuity contract is suitable in your financial situation.

Over the years, I've seen all sorts of guidelines and estimates for how much of their nest egg retirees ought to devote to immediate annuities that turn savings into reliable lifetime income, with some suggestions as low as 25 % and others upwards of 80 % or more.

Just another reason I think combining a plain - vanilla immediate annuity with a portfolio mutual funds or ETFs is a better way to go if you want assured lifetime income and growth.

Immediate variable income annuities offer an immediate income stream with potential growth, this is designed to help keep up with inflation.

Still, the guarantees highlight the big fear with immediate fixed annuities — that you'll make a big investment and keel over a few months later, having received little income from your big annuity investment.

In short, an immediate, or payout, annuity gives you something that you can't duplicate on your own with other investments: an attractive level of current income combined with a very high level of assurance that those payments will continue as long as you live.

Because of the deferral period, you may get a higher income payment amount than you would from a comparable immediate fixed income annuity with the same initial investment.

But if your Social Security payments fall well short of providing you with sufficient assured income to cover basic expenses — or, if you just prefer the emotional comfort of having a larger cushion of guaranteed income — then you may want to consider devoting a portion of your savings to an immediate annuity.

I agree with JLP that fixed immediate annuities are the way to go if you want that «guaranteed» income.

The idea behind the rule creating QLACs is to give people a way to generate retirement income and hedge against the risk of outliving their nest egg while putting up less money than they would have to with an immediate annuity.

The cover - the - basics approach aims to match your fixed expenses with fixed sources of income, such as Social Security, pensions and immediate annuities.

Get some quotes on how much income you could get from a single premium immediate annuity with that savings starting at different ages.

Indexed annuities can also generate regular income, either through fixed payments as with an immediate annuity or payments tied to investment performance.

The idea is that you insure you'll have income flowing in late in retirement while parting with less money upfront than you would with an immediate annuity, leaving more of your savings for spending early in retirement.

There are different types of income annuities you may consider: an immediate income annuity, a deferred income annuity, or a fixed deferred annuity with a guaranteed lifetime withdrawal benefit (GLWB).

Annuity arbitrage tries to accomplish the same goal with the simultaneous purchase of a life insurance policy and a single premium immediate annuity (also known as a lifetime income annuity) on the same person, but from different carriers.

Fixed immediate annuities are designed to provide you with a steady stream of income, regardless of what happens to interest rates or the stock market.

«In years past, the alternative to riding out a bumpy stock market while trying to create a steady retirement income was to take the money out of the market and put it into an immediate annuity,» notes Sean Clark, principal with York Independents, in York, Pennsylvania.

With the single premium immediate annuity, income can begin immediately, or very soon after, an individual obtains the annuity.

For clients who want to protect themselves against this risk, immediate annuities, longevity insurance, single premium deferred annuities, and variable annuities with a guaranteed withdrawal benefit or guaranteed income benefit feature should be evaluated and considered.

Immediate annuities, inflation - adjusted immediate annuities, variable annuities, variable annuities with guaranteed income riders, deferred annuities that function as a form of longevity insurance, annuities with long - term care riders, fixed annuities, equity index annuities, equity indexed annuities with guaranteed income riders...

An annuity with only a distribution phase is an immediate annuity, single premium immediate annuity (SPIA), payout annuity, or income annuity.

With an immediate annuity, you immediately begin receiving income payments soon after you purchase it.

Single premium immediate annuities allow you to set up an immediate, steady income stream with a one - time, lump - sum contribution that can last as long as you live.

With a LifeSource Plus ® single premium immediate annuity, you can convert a portion of your assets into a steady stream of income for a lifetime.

Single - premium immediate annuities let a person set up an immediate, steady income stream with a one - time, lump - sum contribution.

a) Option to commute to the extent allowed under Income Tax Act and to utilize the balance amount to purchase immediate annuity with the same insurer, which will be guaranteed for life, at the then prevailing annuity rate, or