If you have a job, budgeting is relatively simple: it’s based on your paycheck. But once you retire, particularly with pensions so rare, that steady source of income often goes away.
To replace that missing paycheck, many people choose to access their retirement savings or their 401(k) or IRA assets. But even if you withdraw as little as 4% a year from your retirement assets, you risk running out of money, which is a problem considering that we’re living longer than ever before.
With an income annuity from American General Life Companies, you can have a larger income each month, guaranteed for your life or the joint lives of you and your spouse. . You can also purchase an income annuity that’s guaranteed to pay you a certain amount of money for a certain period of time. Or, you can combine these two methodologies… for instance; you can have guaranteed income payments for life, or the joint lives of you and your spouse, or for a certain number of years, whichever is longer. In exchange for these higher income payments, income annuities permanently convert your principal to an income stream.
An income annuity is purchased with a single, one-time, premium payment. The income payments you are guaranteed to receive from an income annuity must begin within a year. You can choose to keep your income payments level during the entire payout period or have them increase each year (either by a set percentage or by the change in the consumer price index.)
While funding retirement is the most common use of an income annuity, it can be an attractive solution for other needs as well. These include:
- Term life insurance funding (certain period)
- Elderly parent support (based on life of parent)
- Charitable giving (based on life of donor)
- College or other education costs for children (certain period)
- Alimony (as required by law either based upon life of provider or certain period)
- Child support (certain period)
- Income replacement after spouse dies (convert part of life insurance proceeds based upon life of surviving spouse or for a certain period, as desired)
Years ago, Richard purchased an IRA. Now, at 59, he’s ready to retire. With a Platinum Income annuity, he can transfer the funds from that IRA into a tax-favored vehicle, giving him a guaranteed source of income for the rest of his life, regardless of how long that may be.
Annuity issued by:
2727-A Allen Parkway, Houston, TX 77019
Platinum Income AnnuityŽ (Contract 01060)
The underwriting risks, financial and contractual obligations and support functions associated with products issued by American General Life Insurance Company (AGL) are its responsibility. American General Life Companies, www.americangeneral.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including AGL. AGL does not solicit business in the state of New York. Annuities and riders not available in all states. Guarantees are subject to the claims-paying ability of the issuing insurance company.
The information provided on this site is for informational purposes only. AGL is solely the provider of the insurance product. AGL, its affiliates, subsidiaries, employees, agents and/or representatives do not provide tax or legal advice. Please consult with your own tax or legal advisor with any questions.
The fixed annuity product is not insured by the FDIC or any Federal Government Agency. It is not a deposit of or guaranteed by the Financial Institution or any affiliate. The payments from this fixed annuity are solely the issuing insurer's responsibility.
