Create an Income Stream
Taking initial withdrawals of 4% or considering annuities are often recommended to retirees.
Annuity premiums can be paid in either:
A) One payment for a single premium annuity
B) In a series of payments for a multiple premium annuity
For example, when you retire, you may choose to move a lump sum from a pension plan to an annuity in order to collect monthly payments from it. This would be considered a single premium annuity.Multiple Premium:
Conversely, if you decide at a young age to begin saving for retirement, you might choose to purchase an annuity and make smaller monthly payments of $200 into the plan over a period of 20 years. This would be an example of a multiple premium annuity.
Multiple premium annuity payments can be made either on a regularly scheduled basis, or in flexible payments, allowing you to pay as much premium as you want within set limits.
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