What amount can I expect to get back from an annuity on a monthly or quarterly basis if I contribute $400 monthly for the next 8 years and open the account with $10,000?

I am 58 years old now and would like to open up a deferred income annuity so I get regular monthly or quarterly income starting from age 68 or 69. However, I would like to open up the account with the minimum amount of $10,000 and contribute around $400 on a monthly basis for the next 8 years. If I go with a company that has a current S&P rating of AA++, what could be my monthly or quarterly earning when I would start getting the annuitized amount at age 68 or 69? I would like to pass on the remains of the fund to my son when both me and my wife pass.

Retirement, Annuities
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1 week ago


Anytime when a question related with an annuity pops up, I become alert.  Please don’t get me wrong; annuity has an important role in planning one’s retirement income.  However, the reason annuity got its bad rap is either the person recommended it didn’t have your best interest in heart or you didn’t do your homework to check out all facts, or both.

I like the way you think ahead that using a deferred annuity for your retirement income and leave a legacy to your wife and children.  However, there’re many simple ways to achieve both goals without the limitations/restrictions of an annuity. For example, most annuities have a surrender period. Thus, by investing new money to the annuity each year, you essentially extend that surrender period for another eight more years.  What’s that mean to you?  When you do take the money out in 8 years, you are still subject to a surrender charge, which means the insurance company will take a portion out of your pay each time.

In addition, the company you’re interested in currently has a good credit rating, but can you guarantee that it will stay that way for the next eight years?  Also, what other choices have you considered or compared with this one?

Selecting a right annuity takes time and energy.  It’s best to have a sit-down meeting with a CFP® or RICP® professional for an independent review. Until you’re absolutely certain the new annuity meets all your objectives, I wouldn’t rush to purchase one. Best!



2 days ago
2 weeks ago