Immediate Income Annuity : Income For LifeYou have always worked. You have always had an income. Now as you are approaching retirement age you face the possibility of no longer working and no longer having a pay check. If you are one of the fortunate few you will have a retirement check coming in. When you reach the magic age of social security you will get a little additional income. Unfortunately, neither of these sources are often enough for you to live on and enjoy your retirement life. An immediate income annuity could be the answer to your dilemma. An immediate income annuity, also known as an immediate annuity or payout annuity, can be purchased for a single premium payment. Your monthly checks then start coming to you in about a month. Or, if you prefer you can postpone check receipts for up to a year. Payments then continue for as long as you live or in some cases for the specific time frame you have selected. The most likely place to get the money for your immediate income annuity purchase is by transferring funds from an IRA, Roth IRA, or 401(k) , 403(b) or 457 account. If your retirement is planned before you reach 59 1/2 there may be some tax and IRS penalty avoidance by moving your funds from your tax differed plans directly into an annuity. You will find that the initial outlay requirement and return on investment will vary from company to company and state to state. Shop around. Interview several brokers and pick the broker than can offer you the best return. Compare each one carefully before you make your purchase. A note of caution, state annuity laws are not uniform and will vary from state to state. The legal requirements for the state of OR will be different than the state of TN. You can only buy from an annuity company and broker licensed to sell in your state. Ask your broker for help in determining how to receive your monthly checks from your income annuity. You may choose either fixed or variable monthly checks. With the fixed option you will get the same amount every month for a long as you live. With the variable payment option, your income will start out lower but increase by a fixed percentage each year. In review, an immediate income annuity can provide you with a vehicle to move tax differed savings without penalty. At the same time it will take your present assets, guarantee growth, and return them to you on a monthly basis giving you an income for life. |