- Who Should Not Buy an Annuity?
An annuity can provide a steady stream of income for retirement. This type of insurance contract allows you to pay a premium upfront, then receive payments from the annuity company at a later date. Annuities offer some financial advantages, but… read more…
- The Most Common Annuity Riders, and How They Work
Annuities are insurance products designed to provide you with a guaranteed stream of income, while an annuity rider can be added to an existing annuity contract to expand or enhance its benefits. There are different categories of annuity riders you might choose to add, depending on your financial needs. Understanding the different types of riders… read more…
- What Is a Registered Index-Linked Annuity (RILA)?
A registered index-linked annuity (RILA) is a specific type of annuity that’s designed to provide income while managing risk. A RILA tracks the movement of a stock market index in order to produce positive returns, while simultaneously giving the annuitant the ability to establish a maximum risk threshold. This version of an annuity could be… read more…
- Are You Entitled to Some of the Extra $2.3 Billion TIAA Will Pay in Annuity Interest?
Annuities have long formed part of the retirement arsenal, and the Teachers Insurance and Annuity Association of America (TIAA) is demonstrating why. TIAA has announced its aim to boost retirement savings for several million of its annuity subscribers, giving back during these volatile times to ensure a smooth retirement experience. TIAA’s latest move comes on… read more…
- How Much Does a $100,000 Annuity Pay Per Month?
How much a $100,000 annuity pays per month depends on several factors, including the type of annuity, the age at which payments begin and whether payments are guaranteed for life or a set period. For example, a $100,000 immediate annuity purchased at age 65 might pay around $500 to $700 per month for life. Rates… read more…
- This Annuity Strategy Lets You Have Your Cake and Eat It Too
Annuities can provide guaranteed income for retirement. You may choose to receive income upfront, with an immediate annuity or put it off until a later date with a deferred annuity. You could also combine those options into a split annuity strategy. This approach can help you enjoy immediate and future income but it’s important to… read more…
- What Is a Contingent Deferred Annuity (CDA)?
As you approach retirement, one of the biggest questions you’ll face is how to secure steady income without sacrificing flexibility. A contingent deferred annuity (CDA) offers a modern solution, letting you keep your money invested while guaranteeing income if your portfolio takes a hit. However, it’s not the only option. Whether you want predictable payouts,… read more…
- How to Buy an Annuity: A Step-by-Step Guide
Annuities can create an additional stream of income for retirement that’s guaranteed and dependable. An annuity is a contract that you purchase from an insurance or annuity company. In terms of how to buy an annuity, it’s possible to start… read more…
- How a Fixed Deferred Annuity Works
A fixed deferred annuity is a contract with an insurance company that allows money to grow at a guaranteed interest rate over a set period of time before payouts begin. Unlike variable or indexed annuities, the returns are predictable and not tied to market performance. This structure appeals to people seeking steady accumulation during the… read more…
- How to Choose Your Annuity Payout Option
Selecting how you’ll receive income from your annuity is one of the most important financial decisions you’ll make in retirement. The payout option you choose determines not only how much you’ll receive each month, but also how long those payments will last, and whether any funds will go to your beneficiaries after you’re gone. From… read more…
- Two Popular Retirement Products Are Frankensteining Into One: Want In?
Nationwide thinks that its new product can change retirement planning for the majority of Americans who do not have access to traditional pension plans. The financial services company is working with Capital Group (the home of American Funds) and Annexus Retirement Solutions to offer a hybrid product: a new target date fund packaged with an annuity to provide retirement… read more…
- What Is an Annuity Period?
Annuities are insurance contracts where you pay a premium upfront for future payments that return your principal plus interest. They can help boost your retirement income, but before buying one, make sure you learn the key terms. One important term is the annuity period, which refer to when payments begin. Knowing how it works can… read more…
- What Is a Qualified Longevity Annuity Contract (QLAC)?
A qualified longevity annuity contract, or QLAC, is a type of annuity contract that you can use to create an additional stream of income in retirement. This type of annuity can offer guaranteed monthly payments beginning at a specific date… read more…
- Ordinary Annuity vs. Annuity Due
An annuity describes a contract between a policyholder and an insurance company. With this contract, policyholders give the insurance company a lump-sum payment in exchange for a series of payments made instantly or at a set time in the future.… read more…
- What Is a Multi-Year Guaranteed Annuity (MYGA)? Definition and Benefits
A multi-year guaranteed annuity, or MYGA, offers a predetermined and contractually guaranteed interest rate for a fixed period of time. A MYGA is just one way to create an additional savings bucket for retirement. In other words, it will help… read more…
- 4 Ways to Get Out of an Annuity
Annuities can provide guaranteed income for retirement. But at some point, you may decide you no longer want or need an annuity you’ve purchased. If buyer’s remorse has you wondering if it’s possible to recover your investment, we’ve got news… read more…
- How Much Does an Annuity Cost?
Adding an annuity to your retirement plan could make sense if you’re looking for a guaranteed stream of income. But the fees associated with one can be difficult to decode if you’re not an insurance or investing expert. Here’s what… read more…
- What Is a Single Premium Deferred Annuity (SPDA)?
A single premium deferred annuity is a financial tool you can use to plan for retirement. This insurance product offers you guaranteed income, beginning at a date you specify, along with tax-deferred growth of interest earned on your policy. If… read more…
- What Is a Flexible Premium Deferred Annuity?
If you’re thinking of purchasing an annuity for retirement income, know that they’re not all the same. A flexible premium deferred annuity offers a way to buy an annuity, without having to pay a large lump sum premium all at… read more…
- Annuity Payout Options: What is Period Certain?
An annuity can provide predictable, guaranteed income in retirement. You can also use an annuity contract to schedule payments from a structured settlement or a financial windfall, such as a lottery payout. A period certain annuity lets you choose when… read more…
- How an Annuity Death Benefit Works
Annuities can generate income for retirement. However, most annuities also feature a standard death benefit. That lets you pass on assets from the annuity to an heir after your death. If you have an annuity of you’re thinking of purchasing… read more…
- Breaking Down Annuity Fees and Charges
Annuities, which are insurance products, are an important part of many Americans’ retirement plans because they can offer guaranteed payments. Insurance companies offer annuity contracts, which allow you to pay a premium in exchange for regular payments, and in some cases, investing… read more…
- What Is a Joint and Survivor Annuity?
When you purchase an annuity, you’re buying an insurance contract to provide guaranteed income for yourself. You can purchase an annuity to benefit yourself but if you’re married, you could choose a joint and survivor annuity instead. Learn more about… read more…
- Qualified vs. Non-Qualified Annuities
Annuities can be a source of guaranteed income for retirement, as well as a way to schedule payments from a structured settlement. For tax purposes, they may be categorized as qualified or non-qualified annuities. More specifically, a non-qualified annuity is comprised of after-tax assets, whereas a qualified annuity is made up of cash that has… read more…
- What Is a Single Life Annuity?
If you’re saving for just yourself, a single life annuity may be the perfect choice. Your beneficiaries won’t see a payout, though, as payments end when you die. A single life annuity, sometimes also called a straight life annuity, can… read more…