Is an Immediate Annuity for You?
With an immediate income annuity, you convert a lump sum into a stream of income that starts almost immediately. Having a guaranteed set stream of income for life provides valuable longevity insurance.
Technically, the product is a single premium immediate annuity, or SPIA, because it’s bought with a lump sum. Most often, though, it’s just called an immediate annuity.
The product is still timely despite historically low interest rates. Many retirees and pre-retirees are either tired of volatility or have already pulled funds from the market and are looking for predictable ways to generate guaranteed income for a specific period or a lifetime or joint lifetime. Only annuities can do that. A healthy person today can eliminate the risk of ongoing market volatility
