There is no argument over the fact that
pensions are the top most priority of a person who is about to retire. However,
if any of you is close to retirement and is looking for an alternative to
pension, he must take a good look at the instant
annuity quotes. It goes without saying that with an ever
increasing decline in the traditional pensions, the popularity of immediate
annuities is going to increase exponentially where an individual would be
looking for a constant source of income once he has been retired from his day
job. Making a purchase of your immediate annuity is nothing different as
compared to that of a pension. All you have to do is invest a lump sum amount
and you would then be able to claim a particular guaranteed amount of income on
monthly or yearly basis. One of the best things about annuities is that the
payments you are supposed to receive start immediately as the name suggests,
usually within a short period of thirty days after you have handed over the
lump sum amount. Before going into the detail, it is of prime importance to
mention here that immediate annuities are remarkably different from the
deferred annuities. A deferred annuity is more like a retirement plan where
your own money is sacked with an added benefit of tax deferral which implies
that you won’t have to pay even a bit of tax on your savings. Once the person
retires, he can withdraw the entire money collectively or prefer to go with the
monthly payments. Remember that the tax is applied at the time when the amount
is withdrawn. On the contrary however, the instant annuity quotes enable you to
convert some of your retirement funds into a steam of consistent income that
you’d be able to enjoy as long as you live. And this can be taken as the most
fundamental benefit of an immediate annuity that you no longer have to be
concerned about your age being lasting longer than your money.
Furthermore, since the responsibilities
of investments are completely taken care of by the company that provides
annuity, you no longer have to take that burden on you either. Then if you make
sure that your provider is secured financially, immediate annuity that you may
determine using an online
annuity calculator is quite safe and guaranteed and is not
impacted at all by the variations of the financial markets. Last but not the
least, it is indispensable to mention here that immediate annuities are quite
efficient in terms of taxes as well since it makes sure that you have to pay a
little bit of tax on the checks that you receive only rather than on the lump
sum amount that you have submitted. It must be added though, that calculating
the value of your immediate annuity may not be an as easy of a task as it may
appear since certain variables are involved. Therefore, the use of an online
annuity calculator is recommended to get a better idea of your returns on your
immediate annuity.
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