How Does An Immediate Annuity Work?
Immediate annuities can be either fixed or variable. With an immediate fixed annuity, the payments you receive stay the same regardless of how other investments perform. With an immediate variable annuity, the payments you receive vary according to the performance of your other investments. You also have the option of dividing your immediate annuity into fixed and variable accounts, which means a guaranteed, fixed income today and the potential for income growth in the future. Although annuity contracts can only be issued by an insurance company, you can purchase them from a variety of licensed sources such as banks, brokers, and agents. Your financial advisor can help you determine which companies offer the investment options that best suit your goals.
