Immediate Annuities: A Guide to Income Right Now

Introduction: “If you’re nearing retirement and want an income stream right away, an immediate annuity might be the answer. Let’s look at how these work and what they can do for you.”

Main Sections:

• How Immediate Annuities Work: “You pay a lump sum and start receiving income right away, usually within a month or so.”
• Income Duration Options: Explain lifetime income (providing money for life) and period-certain (income for a specific time frame).
• Pros and Cons: Benefits include guaranteed income and simplicity, while downsides are limited liquidity and no chance for growth.
• Who Should Consider Immediate Annuities?: Ideal for retirees who need dependable income right away.
• Example Scenario: Describe a recent retiree who wants immediate monthly income for budgeting and security, choosing an immediate annuity to cover her expenses.

Conclusion: “Immediate annuities provide instant income, making them an attractive option for those ready to start drawing on retirement funds.”