Retirement Investing

Immediate Annuity

Definition

What is Immediate Annuity?

An annuity that begins income payments shortly after purchase.

Example in practice

The retiree pays a lump sum and receives the first payment next month.

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Annual portfolio withdrawals divided by the portfolio's starting or current value.

An estimated withdrawal rate intended to support spending over a long retirement under stated assumptions.

The risk that poor returns early in a withdrawal period cause lasting portfolio damage.

The property, investments, rights, and obligations left by a person at death.

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