An immediate annuity guarantees a specific monthly income for life, removing investment risk and the fear of running out of money in retirement. Unlike other products, it combines principal and earnings based on life expectancy and can include inflation adjustments.
Chapters
Here's the problem.
Now that you're retired or preparing to retire, how do you get the most income out of your investments without the risk of depleting your assets and running out of money as you get older? Because you don't know how long you will live or how much you will convert some of your investments into a private pension. A structured payout of both principal and earnings, mathematically calculated using life expectancy statistics of retirees and conservative earning assumptions. It's called an annuity, and it's the only financial instrument that absolutely guarantees to pay you a specific monthly income for the rest of your life. These are the worry-free retirement income alternative because they take all the risk out of managing your money. No matter how long you live or what happens to the economy. They can even include a cost of living or annual inflation adjustment.