Sentences with phrase «immediate income annuities begin»

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.

(In contrast, immediate income annuities begin payments within 1 year.)

An immediate income annuity begins annuity payments within one year of the premium payment.

Not exact matches

In their simplest form, annuities guarantee an income stream for buyers either now (immediate annuities) or beginning at a later date (deferred annuities).

However, income annuities (sometimes referred to as «immediate annuities» or «deferred income annuities,» depending on when income payments begin) do offer a predictable guaranteed stream of income that you can't outlive.

Like an immediate annuity, a longevity annuity provides guaranteed income for life, except that while you invest your money now, the payments don't begin until later, typically much later, say, 10 to 20 years in the future.

If you want the guaranteed income to begin soon — say, to pay for essential living expenses beyond what income from Social Security alone will cover — then an immediate annuity would be a better way to go (although you may still want to hold off a bit to get a better handle on what your actual expenses will be after you retire).

Second, the tax treatment describe here applies only to deferred annuities (contracts that have an accumulation period, during which your money earns interest; immediate annuities, which provide an income beginning within one year of purchase, get very different tax treatment and do not present the issues described here.

There are many kinds of annuities out there, but there are two types that I think make the most sense for retirees looking to convert a bit of savings into a lifetime income stream: immediate annuities, which as their name implies, begin making payments immediately; and longevity annuities, which start making payments in the future, sometimes 10 or 20 years down the road.

Most annuities purchased in Canada are immediate: income payments begin immediately after purchase.

A longevity annuity is similar to an immediate annuity in that you give an insurer a lump sum in return for a guaranteed lifetime income stream, except that you don't begin collecting that income until some point in the future, say, 10 or even 20 years later.

Annuities certainly aren't for everyone, but generally I think people who feel they need more guaranteed income than Social Security alone can provide should consider putting some (but not all) of their savings into two types of annuities that are relatively easy to understand and evaluate: immediate annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down Annuities certainly aren't for everyone, but generally I think people who feel they need more guaranteed income than Social Security alone can provide should consider putting some (but not all) of their savings into two types of annuities that are relatively easy to understand and evaluate: immediate annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down annuities that are relatively easy to understand and evaluate: immediate annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down annuities, which convert a lump sum of savings into monthly payments that begin immediately, and longevity annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down annuities, which allow you to convert an investment now into payments that will start later, say, 10 or more years down the road.

If you purchase a single premium immediate annuity, you'll receive income within 12 months of purchase — beginning one month after purchase (for monthly payouts), one quarter after purchase (for quarterly payouts), and so on.

Secondary market annuities can be similar to immediate annuities, offering an income stream that begins in one month.

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

Immediate annuities are sometimes referred to as single premium immediate annuities, because you make the upfront investment (the «premium», in insurance terminology), and then begin receiving benefits (income payments).

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

However, many people who have already retired and need annuity income right away opt for immediate annuities, which skip the accumulation phase and begin to issue payments as soon as you invest in the contract.