My Annuity Adventure Part IV, Getting Organized
Every year my step mother would hang me out the windows by my legs with newspaper and a bottle full of vinegar to clean the outsides of the windows. The rest of the house was scrubbed down spotless in her annual spring cleaning routine. Well, it is April and Spring has sprung. Spring cleaning is any heavy duty cleaning and organizing of affairs in one’s life. As we started our virtual closet cleaning last post, I realize our timing is perfect. Today’s post will guide us through organizing our finances, similar to organizing our closets.
We previously pulled our annuities out of the closet and narrowed them down to the two we buy here at PPI, Structured Settlement Annuities and Single Premium Immediate Annuities. Last post we covered structured settlement annuities.
Now it is time to define our second and final annuity, Single Premium Immediate Annuities (SPIA or Immediate Annuity for short). A SPIA is a contract issued by a life insurance company. The annuity is purchased with a single premium payment which guarantees to provide specific payments to you and/or other persons. You can select the frequency and guarantee periods of your income payments from a variety of income plans.
Now we have
1. Structured Settlement Annuities
2. Single Premium Immediate Annuities
in our closet, organized into basic definitions.
All this organizing of our thoughts is going to contribute to organizing our finances. Maybe you are reading this post because you are considering selling your annuity. This means you have a need for a lump sum of cash. It is at this moment more than any other that taking your time, being clear and creating a financial plan is most important.
As we progress in our quest for understanding and definition of annuities we are led into putting our financial closets in order too. Next week I will go over how I would design a financial plan to manage your new lump sum of cash.
Related posts:
- My Annuity Adventure Part III
- My Annuity Adventure, A Quest for Understanding – Part II
- My Annuity Adventure VIII Where We Have Been, Where We Are Going
Submitted to Customer Tips
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