Annuities for Cash Management
A Single Premium Income Annuity (SPIA) is a fixed annuity contract issued by an insurance carrier. In very simple terms, a SPIA is where you trade a sum of money today, for payments over time, in most cases a lifetime. It is an option to consider if:
- You have already received a settlement and now want to use all or a portion to provide a steady income.
- You have a lump sum of money available to use to provide a predictable income stream (retirement funds, divorce settlement, inheritance, etc.).
- You want a safe, predictable source of income with no active investment management required.
SPIAs offer a fixed rate of return, and there are no on-going investment management fees or expenses. They provide a guaranteed stream of income for a certain period of time or for a lifetime, depending on the annuity type. Contracts can also be written as joint and survivor (for married couples, as long as either is living), but also allow you to provide for your beneficiaries.
Periodic payments from a SPIA start within a year of purchase and payment frequency can be scheduled to meet individual income needs, such as monthly, quarterly, semi-annually, or annually.
Call us to find out more information on Single Premium Immediate Annuity.