No. of Recommendations: 3
Keep in mind that immediate fixed annuities are commodity products. Every insurance company and many financial institutions sell them. It's easy to get multiple quotes and compare. Don't forget to get quotes from discount brokers like Fidelity, Vanguard, T Rowe Price, and TIAA-Cref.

The people who sell them will often try to steer you into more complex products. Like variable annuities. Stick with the basic plan.

Most pay for life, but leave nothing for your heirs on your death. Some buy fixed term annuities to guarantee a minimum number of payments--guarding against early death.

We have an annuities discussion board which mostly links what others have said about them.

No inflation protection. So best to keep most funds in equities as long as you can. And then perhaps buy a series of annuities over time to increase your payout.

Check the rating of the issuer usually in AM Best. Don't be surprised that most of them are repackaged/relabeled from a handful of companies that issue them. You want a company that is financially strong and likely to be around long term. They are not insured. The industry claims no one ever failed to get paid, but that is usually because failing companies are bought out by other companies usually within their state. They are regulated by state insurance agencies.

Prices depend on interest rates. Low interest rates make them more costly to buy.
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