If you’re ready to start receiving steady income now and have a sum of money available (think an inheritance or Individual Retirement Account [IRA] rollover), an immediate annuity may be a good option. Simply put, you’ll be converting existing assets into monthly payments to ensure steady cash flow for now, and in the future.
- Income payout options – like recurring payments over a fixed term, or until you die.
- Payments begin right away.
- Possible death benefit paid out to the people and causes of your choosing.
What to be aware of:
- Since you start receiving payments immediately, there is no accumulation phase and therefore less potential for growth.