May 23, 2013
The immediate annuity is the only annuity worth considering. What is this thing and where should you go to get one?
The immediate annuity is the only annuity worth considering. What is this thing and where should you go to get one?
With an immediate annuity, you give the insurance company a lump sum of money, they check their actuary tables, and then they give you a paycheck every month for the rest of your life. Where should you go to get one? VANGUARD!
You are correct, Katherine. Well done! Let’s recap. Most annuities are CRAP! They are “sold” by “smart” financial “experts” because they provide THEM high commissions and you high yearly fees year after year after year. The one exception could be the immediate annuity, but you must do it right to avoid the commissions and the high fees.
Just as Katherine stated, you give an insurance company a lump sum of money and they pay you a certain amount of money for the rest of your life based on your gender, age, and expected life expectancy. If you live longer than expected, you win in the deal. If you die earlier than expected, they win. You give up all rights to the money once you sign on the dotted line. This could work for some folks who have no desire to leave money to their heirs or charitable organizations. Why Vanguard?
Vanguard provides the cheapest immediate annuities around through their relationship with specific life insurance companies. You will pay no commissions and the yearly fees will be very low in comparison to your normal annuity. You can go here:https://investor.vanguard.com/what-we-offer/annuities/get-guaranteed-income?Link=facet to learn more. Educate yourself carefully before making any move with your money. A successful financial future requires it.