An appealing feature of fixed annuity income may be that it’s easy to under-stand how the amount you’re receiving is calculated. It is based on: The dollar value of the contract when income payments start 
Interest earnings guaranteed in the contract 
Annuity tables that project your life expectancy based on your age 
As a rule of thumb, the larger your contract value and the older you are when you begin to receive income, the larger each payment will be. 
On the other hand, with a fixed annuity payout, the amount you receive is not indexed to inflation as Social Security payments are. The risk is that your costs will go up, but your income 
will not. If inflation increases rapidly, as it can, an income that was once 
adequate may leave you short of cash. And the longer you 
live, the less far your income is likely 
to stretch. When you’re ready to start receiving income from a deferred annuity, all you have to do is ask. You let the annuity company know that you want to convert your contract from accumulation to payout. Depending on your contract, you may have to indicate the payout option you’ve chosen, whether you   Read more…