#61: The Finance Flash Go Podcast | Important Topics About Money | Single Premium Immediate Annuities

Today on the Finance Flash Go! podcast, we’re going to talk more about annuities and a particular variety of annuity. An single payment immediate annuity is a product and agreement between an individual and an insurance company that pays the owner a guaranteed income starting pretty much immediately. It differs from a deferred annuity, which begins payments at a future date chosen by the annuity owner. An immediate payment annuity is also known as a single-premium immediate annuity (SPIA), an income annuity, or simply an immediate annuity. Buyers can choose monthly, quarterly, or annual income. Payments are generally fixed, but variable and inflation-adjusted annuities are also available. People often buy immediate payment annuities to supplement their other retirement income. It is also possible to buy an immediate payment annuity that will provide income for a limited period of time, like 5 or 10 years. One downside of an immediate payment annuity is that payments usually end upon death with the insurance company keeping the remaining balance. That’s how the insurance company makes money. Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice. A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions. We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!