When Is the Best Time to Buy an Annuity?
The Annuity Man
Annuities were first introduced in the Roman Times as lifetime pension payments for the dutiful Roman Soldiers and their families. The Latin word "annua" means payment, and is the origin of the word "annuity." That early Roman version of an annuity is actually today's Single Premium Immediate Annuity (SPIA).
There are many types of annuities, and each has unique benefit propositions and limitations. Multi-Year Guarantee Annuities (MYGAs), Fixed Index Annuities (FIAs), Variable Annuities (VAs), Deferred Income Annuities (DIAs), Qualified Longevity Annuity Contracts (QLACs), Single Premium Immediate Annuities (SPIAs), and Income Riders attached to deferred annuities are the primary types of transfer of risk strategies available to the consumer.
In my opinion, the best time to buy an annuity is when the contractual guarantees fit for your specific goals. In addition, you should only buy an annuity (regardless of type) for the contractual guarantees, and the decision should be on your terms and on your time frame. There should never be an urgency to buy, and you shouldn't be pressured into signing application paperwork by an eager or starving agent.
Annuities, regardless of type, are commodity products that should be shopped with all carriers to find the highest contractual guarantee for your specific situation. There is not one "best" product or "best" carrier, so do let an agent or advisor steer you to their product of choice.
You can contact Stan The Annuity Man if you have any questions or want to see specific annuity quotes for your situation...or to view a live feed of the best MYGA fixed rates for your state of residence