Once you’ve done the hard work saving for retirement, the next step is to take those investments—IRAs, 401(k)s and brokerage accounts—and turn them into an income. When you take a sum of money and invest it into an annuity, you’re basically getting a goose that lays golden eggs. An annuity can turn a sum of money into paychecks that keep on coming, no matter how long you live, for one life or two. But how do you know which annuity to choose? How much should you invest? And how much of an income will you really get?
All that glitters isn’t gold: a lot of advisors focus on the rate of return or the bells and whistles of an annuity instead of on the income it may provide. Here is a peek at some real numbers. Continue reading