How much money do you need for an annuity?
The Annuity Man
Annuities are the most misunderstood financial product of all time. There are many types of annuities that all have unique benefit propositions and limitations, but somehow people nod their heads when someone says "I hate annuities." That's like saying you hate all restaurants. It's ridiculous.
I'm constantly getting the question of "How much money does it take for an annuity?" Tough question with no perfect answers. First of all, it comes down to the type of annuity you are considering. If it is a lifetime income annuity type, then those payments will be primarily based on your life expectancy at the time the income starts. The older you are the higher the payments. The younger you are the lower the payments. Just like Social Security.
The more money you put into an income annuity, the more income you will get. The more money you put into an interest based annuity (like a Multi-Year Guarantee Annuity), the more it will contractually grow.
Most annuity types have a minimum dollar amount that is required to buy. It varies with each carrier and product type, but ranges from $5,000 to $20,000. In addition, there are age limits as well depending on the product type and carrier.
You should not put more that 50% of your assets in to annuities. That is a guideline put in place by the annuity industry.
Contact Stan The Annuity Man for the best quotes on all annuity types and to access his proprietary annuity calculators. You can also receive his 6 Annuity Owner's Manuals for free and under no obligation.