Immediate Annuities

What is an immediate annuity?

As you probably deduce from its name, immediate annuities start paying out immediately. These are often bought by people that are already retired. In immediate annuities, you give an insurer company a large sum of money and you will receive regular income payments...

How do I know if buying one is right for me?

If you’re concerned about outliving your money, an annuity could be a great addition to your retirement strategies. If you feel you have a high life expectancy and you want to secure an income source, you probably should consider the purchase of an immediate annuity,...

What are its advantages?

Since immediate annuities start paying out instantly, represent a great alternative for retirees to prevent outliving their retirement money. The biggest advantage of immediate annuities is that if they’re fixed annuities would be easier to incorporate into our...

What are its disadvantages?

The disadvantages of owning an immediate annuity will depend more on whether the annuity is fixed or variable. An immediate fixed annuity may cause the loss of purchasing power of the money you’ve invested. While immediate variable annuities may come with higher fees....

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