By Stan The Annuity Man
As a grandparent, a lot of you are fortunate to have worked for companies that provided a pension payment upon your retirement. In combination with Social Security guarantees, these 2 income sources usually provide the monetary level needed to live comfortably for the rest of your life.
But what happens is you don’t have a pension payment, and Social Security is not providing the income you need? How do you fill a specific income gap?
Maybe it’s time to look at an immediate annuity, also called in income annuity.
Do as the Romans did
Income annuities originated in the Roman times as a pension payment for Roman soldiers and their families as appreciation for their military service. This was one of the first recorded uses of an annuity income type guarantee.
Single Premium Immediate Annuity (SPIA)
Income annuities are also called a Single Premium Immediate Annuities, or a SPIAs. This is today’s version of the original annuity from the Roman times. SPIAs are a pension, and a direct transfer of risk to provide a lifetime income stream regardless of how long you live.
Transfer the risk
Longevity risk is a fancy way of being fearful of outliving your money. Buying a SPIA transfers the risk of paying you a lifetime income dream directly to the issuing carrier. The annuity company is on the hook to pay.
Fill the gap of your “income floor”
Everyone has an income floor, which is the amount of monthly income needed to cover expenses and lifestyle needs for the rest of your life. If you need to fill a gap in your specific income floor, then a SPIA can contractually provide that needed amount.
Lifetime, period certain….or both
SPIA payments can be set up for life, for a specific period of time, or a combination of both. SPIAs can be fully customized to meet your specific income needs.
No medical tests required
Single Premium Immediate Annuities are guaranteed to be issued. There are no medical tests, physicals, or exams required. The only question you need to answer is if you need income, and if so, how much? From that information, you can contractually solve for that needed payment amount.
If you need more income, or want more income to combat future inflation, it might be time to consider Single Premium Immediate Annuities.
Get a Book
I have written a book on income annuities called The SPIA Owner’s Manual, and will send a signed copy to all Grand Magazine readers.
Stan The Annuity Man is one of the country’s leading Independent Annuity Agents. He is nationally recognized as an annuity critic and expert, and has been called one of the most outspoken consumer advocates for annuities. Stan is the most read and most controversial annuity commentator in the country, and his book The Annuity Stanifesto has quickly become the go-to-resource for all things annuity. For more information go to: www.stantheannuityman.com