How does Annuity Lifetime Income work?
The Annuity Man
Of all the financial product types available in the world, only one can provide an income stream that you can never outlive. It's a financial monopoly on a strategy that the majority of Americans want in their portfolio. It's also the most controversial and hated financial word as well. That contractually guaranteed lifetime income product is...an ANNUITY.
Annuities were first introduced in the Roman Times as pension payments for the dutiful Roman soldiers and their families. The Latin word for payment is "annua." Guess where the word annuity came from? In fact, today's Single Premium Immediate Annuity (SPIA) is pretty much the same simplistic "Roman Annuity" structure from back in the day.
Lifetime income using annuities is a combination of return of principal plus interest. Regardless of the type of annuity you choose, that is how the income payments are structured. The true benefit proposition with annuity lifetime income is to draw your account down to zero, so that you are in the annuity company's pockets. They are on the hook to pay regardless of how long you live and even if there is no money in the account. That's the true definition of transferring risk. You are transferring risk to the annuity company to pay a lifetime income stream.
Contact Stan The Annuity Man for the best and highest contractually guaranteed quotes with all carriers using Stan's proprietary annuity calculators. You can also receive Stan's 6 Annuity Owner's Manuals for free and under no obligation and see a live feed of the best fixed rate annuities available for your specific state of residence.