Variable annuities are usually tied to market factors. If you sign up for a variable annuity, you won’t find guaranteed monthly payments. If you sign up for a fixed annuity, you’ll lock in guaranteed monthly payments. Type of annuity: The monthly payment you get from an annuity may or may not fluctuate.But you’ll typically see a higher monthly payment with a deferred annuity. An immediate annuity kicks in right away. When you want the payments: You can choose between an immediate annuity or a deferred annuity.You’ll want to lock in a high interest rate for higher payments. The interest rate: When you sign up for an annuity, you’ll see an interest rate defined in the contract.The exact amount that you can expect from a $200,000 annuity will vary based on three factors: You can buy an annuity if you want a guaranteed source of income for any situation. ![]() Most people who purchase annuities use the funds as an additional stream of income for retirement. In others, you’d make the payments to your insurance company over a long period of time.Īfter you provide the funds, your insurance company will make regular payments at a predetermined amount for a specific period of time. In some cases, you’ll provide all of the funds upfront. An annuity is a financial contract between an investor and an insurance company that generally locks in a regular monthly payout in exchange for an investment.
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