An annuity that begins paying out immediately is referred to as an immediate annuity, while those that start at a pre-set date in the future are called deferred annuities. The size of your payments are determined by a variety of factors, including the length of your payment period. It is also possible to structure the payments under an immediate annuity so that they vary with the performance of a specified set of investments, usually bond and equity mutual funds. The final alternative to how annuity income gets generated is called the indexed annuity. A fixed account, unlike a mutual fund, pays a fixed rate of interest. Standard & Poor’s, sap® and sap 500® are registered trademarks of Standard & Poor’s Financial Services LLB “S&P” ; DJIA®, The Dow, Dow Jones and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLB “Dow Jones” ; and these trademarks have been licensed for use by SPDJI and sub licensed for certain purposes by Nationwide.
Of course, it’s also wise to consult with your financial adviser to make sure that this purchase makes sense within your overall financial picture. Lump Sum. You can fix it for ten years if you like. One common feature, the guaranteed minimum income benefit, guarantees a particular minimum level of annuity payments, even if you do not have enough money in your account perhaps because of investment losses to support that level of payments. Unless you plan to hold the new annuity for a significant amount of time, you Here – Annuity Rates Formula may be better off keeping the old annuity because the new annuity typically will impose a new surrender charge period.