Annuities - Why Buy An Immediate Annuity?
Why Buy An Immediate Annuity?
Among the reasons to consider an immediate annuity are the following:
- An immediate annuity is a financial vehicle that can provide guaranteed income for life.
- The
income payments you receive can supplement your other income sources,
such as Social Security and pension payments, which may not provide
enough income by themselves.
- You choose how often
to receive your income payments. Whether monthly, quarterly,
semi-annually or annually, there's a payout plan to fit your particular
needs.
- You pay income taxes only as you receive
your payments. When you receive income payments, you will be taxed on
the portion of the payments that is earnings. The portion that is
principal, which represents your initial deposit made with money that
had already been taxed, is not taxable.
- You
may lessen your financial worries. Financial management can be a burden
in your retirement years. Because you don't know how long you'll live,
it's hard to be sure your resources will last as long as you need them.
If you withdraw too much of your nest egg, your future income can
suffer or you may run out of money entirely. If you are too thrifty
when it comes to spending your nest egg, your level of living may
suffer. Immediate annuities can remove some of these burdens by
providing you with a predictable fixed payment for life, so you can
concentrate on enjoying your hard-earned retirement.