Immediate Annuity

Immediate annuities also called Lifetime Annuities are paid for with a one time payment. The benefits occur immediately and can be taken over a fixed period of time or the lifetime of the policy holder.

A typical use for an immediate annuity it to rollover your money from a pension plan, an IRA or 401K plan into an immediate annuity and begin getting payments immediately.

An immediate annuity may even be a better investment that stocks at times, depending on the market.

A professor at Baylor University, William Reichenstein, studies various stock portfolios from the years 1972 to 2000.  He discovered that a 65-year-old retiree with a $1 million portfolio invested with a mix of 40 percent stocks and 60 percent bonds, withdrawing $45,000 a year from his account would run out of money in 1995, at age 88. Part of the reason was the poor performance in the early years. Had this person use half of his portfolio to buy an immediate annuity, he would still have $136,000 when he turned 95.

One of the best way of determining which immediate annuity is right for you is to get the sound advice of a knowledgable advisor. Click here if you are ready to find out which immediate annuity is best for you.