An immediate annuity is a type of retirement income product that can provide a steady stream of income for the rest of your life. It is a great way to ensure that you have a reliable source of income in retirement, and it can be a great way to supplement other retirement income sources.

Immediate annuities are purchased with a lump sum of money, and the annuity company then pays out a fixed amount of money each month for the rest of your life. The amount of money you receive each month is based on the amount of money you put into the annuity, your age, and the current interest rate.

There are several benefits to an immediate annuity. First, it provides a guaranteed source of income for the rest of your life. This means that you don’t have to worry about outliving your money, as the annuity will continue to pay out even if you live to be 100.

Second, immediate annuities can provide a hedge against inflation. As the cost of living increases, the amount of money you receive from the annuity will increase as well. This can help to ensure that your purchasing power remains the same over time.

Third, immediate annuities can provide tax advantages. The money you put into the annuity is not taxed until you start to receive payments, and the payments you receive are taxed as ordinary income. This can help to reduce your overall tax burden.

Finally, immediate annuities can provide peace of mind. Knowing that you have a reliable source of income for the rest of your life can help to reduce stress and give you the freedom to enjoy your retirement.

If you are looking for a way to ensure that you have a reliable source of income in retirement, an immediate annuity can be a great option. It can provide a steady stream of income for the rest of your life, provide a hedge against inflation, and provide tax advantages. It can also provide peace of mind, knowing that you have a reliable source of income for the rest of your life.