Immediate annuities
What is the advantage of having an immediate annuity? Isn’t a bank account as efficient in for example providing an extra $400 per month? Secondly, I hear immediate annuities have drawbacks…what are they? My goal is to have an extra $400 to supplement social security. Thanks. Can you just email your answer..dont want to be on the air.
Terry Says
With an immediate annuity you give an insurance company (a highly rated one!) a lump sum of money –and they promise you a fixed check a month for life (or for your life and that of your spouse). But you can’t change that check — ever. And if inflation comes, it might not retain its buying power.
To compare what you could get per month go to www.immediateannuities.com. They will ask your age (and your spouse’s age) and your state of residence. Be sure to check on the insurance company safety rating!
