You might be surprised to find out that buying an annuity after you’ve reached the age of 75 is the best way to maximize your return.
These are some of the Tips and Tricks we share about Immediate Annuities at AnnuityStraightTalk.com
The product that facilitates this is an immediate fixed annuity. This this program, you pay a certain amount to your insurance provider, and in return, they give you a specified monthly payment for the rest of your life. As interest rates have declined in recent years, annuities have not been as popular; however they still provide a safe and consistent income.
If you wait until you’re older than 75, you can get an immediate fixed annuity and get more money with your returns. Your potential life span is calculated into this equation.
Annuity payments are calculated based on many factors, one of these being life expectancy, or mortality credits. A person who is ages 70 or greater typically has fewer years left in their life than a person who is younger. Thus, monthly payments will be higher for the person in their 70s since the insurance company will not foresee paying that individual for a long period of time.
Recently, comparisons were made between an insurance company’s $100,000 policies for a man of 65 years, and a man of 75 years. The payout for the 65 year old was $7,740 annually. However, the 75 year old got $10,068 each year. To really maximize returns, an 85 year old male could realize a payout of $14,688 per year.
If you think you can handle it and really benefit from the added money due to good health, wait until you’re 75 to get an annuity. The downside of waiting, of course, is that when you do die, all benefits die with you. You must weigh the risks and benefits of waiting for yourself.
Another aspect to take into consideration is that interest rates will probably begin increasing soon. The market just received a bunch of money from the federal government that will raise interest. Once our economy gets back on its feet, your interest rates will go up. You might wish to play the waiting game and get an annuity when the interest rates go up, instead of just getting an immediate annuity.
There are definitely Pros and Cons of Immediate Annuities.
A solution to these what ifs would be to purchase an immediate fixed annuity with a guaranteed payment for a set number of years, 5-10 years. Your heirs can get the income payments if you die with time left in the payment period. If the time period elapses and you’re still alive, you can get a new annuity which, since you’re older, can yield more impressive returns.
Before you purchase an immediate fixed annuity, be sure to do some research. Find out which insurance company offers the best terms for a immediate fixed annuity and go with them. Visit AnnuityStraightTalk.com for more useful information.