Many people don’t realize that choosing the right annuity can actually provide an income stream for you. This income could be a fixed or variable amount and could last for a significant amount of time if planned correctly. Luckily, Adams Insurance & Financial serving Northwest Arkansas are the experts for all of your annuity needs.
Annuities are a valuable way to provide an immediate and constant stream of income. This is particularly true for older individuals who are concerned that they have not managed to gather as much in retirement savings as they will need to last until their death.
An income annuity essentially swaps a lump sum payment made by an individual or a couple and turns this into a guaranteed stream of periodic income. The purchaser of the annuity can expect to begin receiving payments from their annuity either immediately or within a month or so after they are purchased.
There are a wide variety of annuities, but the ones that provide an immediate stream of income are generally known as:
- Immediate Annuity
- Single-Premium Immediate Annuity (SPIA)
- Immediate Payment Annuity
People who have more time to go until retirement can also plan ahead and purchase a deferred annuity that won’t begin paying out till many years down the road. This type of annuity would not provide an immediate income stream, but it would be a promise for guaranteed income in the future.
If you are looking to open an annuity in Northwest Arkansas, Adams Insurance & Financial can direct you towards which type of annuity is right for you and explain the differences in fixed and variable investments. Annuities can be fixed or variable and they typically are designed to last for the life of the purchaser.