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You pay a lump sum or series of payments to the insurer who, in turn, agrees to make regular payouts to you over a period of time, which could be a set number of years or the rest of your life.
How an annuity works. When you purchase an annuity, you hand over a lump sum of money or a series of premium payments to an insurance company. In exchange, the insurer promises to pay you a series ...
Qualified annuities: Annuity contributions made with pre-tax money such as in a traditional IRA or traditional 401(k) or 403(b) plan, are taxable when they’re distributed from the account. Any ...
Payments can be in a lump sum, via periodic payments or a combination of the two. The payout amount is determined by the amount you paid in, the investment performance, your expected lifespan and ...
You can receive a lump sum from your annuity, a life option that pays over your lifetime and, if you choose, a spouse, other survivors or an estate, or a systematic stream of fixed payments that ...
Your comfort level with investment risk is a critical factor in deciding between a lump sum and an annuity. A lump sum exposes you to a lot of risk. Invest the money too conservatively, and it ...
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