An annuity is an investment that pays you a set monthly income and is one of the simplest retirement income options. It is designed for people who want to turn some of their savings into a guaranteed source of income that will last a lifetime. An annuity is a lump sum investment where the insurer pays guaranteed regular income to the investor. This payment consists of interest and a return of principal.
The income payments are based on:
• Your age (in case of Joint Annuity, your partner’s age), for life annuities
• Current interest rates
• The period of time for which the payments are guaranteed
• The amount of money invested into the annuity
Do you wonder how much money it takes for a specific monthly cash flow?
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