In Jeff Benjamin’s Investment News article “Five ways to boost retirement income,” immediate annuities are at the top of the list. The best way for retirees to make the most of the retirement savings they have built is to have diverse yet safe investments that will continue to generate income even in retirement. By establishing a steady income stream that will carry you through rough economic times, you will be able to have the flexibility to manuever through assets with some risk to generate income in retirement. Five investments that can help those of retirement age with their steady and reliable income stream are immediate annuities, individual bonds, reverse mortgages, convertible bonds, and master limited partnerships.
As the demand has increased for immediate annuities, they have become easier to understand for everyday investors. A single-premium immediate annuity is one of the best ways to obtain guaranteed predictable income. For investors who have already retired, the author recommends a simple no-load version without added riders like death benefits. While your monthly income from the annuity may seem low, experts recommend using a portion of your retirement savings for an annuity and using that payout for everyday expenses. Then the rest of your savings can be put towards other income growing investments. New York LIfe, MetLife, Hartford, Nationwide, and John Hancock are some of the post popular insurance companies that work with annuity products.