Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
In short, it depends on the size of the annuity (how much you want to put it in). If you want to buy an immediate annuity, you're paying a sum of money to the insurance company in one payment and you're done - you start receiving annuity payments immediately. If you want to buy a deferred annuity, you are paying premiums to the carrier throughout a given number of periods - you start receiving annuity payments at a future point in time. The advantage being that the monies put into the annuity grow tax-deferred.
What you get out of the annuity will vary a lot as well because each carrier that offers annuities will offer different interest rates so one company may offer a large payout to you than another even though you're putting in the same amount of money either way. This is where an independent annuity broker comes in handy because they can work with you on a personal level, compare options from multiple carriers to see which will offer you the best payout, and get your annuity set up - plus, brokers do not charge fees for their services so you can only help yourself.
I hope the information is helpful - please feel free to contact me for assistance and if you have any further questions. Thanks very much.
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What you get out of the annuity will vary a lot as well because each carrier that offers annuities will offer different interest rates so one company may offer a large payout to you than another even though you're putting in the same amount of money either way. This is where an independent annuity broker comes in handy because they can work with you on a personal level, compare options from multiple carriers to see which will offer you the best payout, and get your annuity set up - plus, brokers do not charge fees for their services so you can only help yourself.
I hope the information is helpful - please feel free to contact me for assistance and if you have any further questions. Thanks very much.