Whatever your decision is, you should make sure that you understand the consequences that go along with each decision that you have available to you. Many people will end up not knowing the facts about when they should begin their annuity and will end up making a poor decision because of it.
Large Sum of Money
Whether you have just won the lottery or gotten an inheritance you will find that this is a great time to begin an annuity. You will be able to put this money into the account and know for sure that it is something that you can rely on once you get to retirement age. A lot of people will do this when they have not come into enough money to enable them to retire early.
Once you have put the money into the account you can rest assured that it will be there waiting on you no matter what once the time comes for you to rely on social security checks. You will simply need to put in the amount of money that you have won and let them know how much you expect over a specific period of time. This will allow you to understand what to expect later on.
Many people prefer to start their annuity when they are in their 20s. This is something that is going to allow them to be able to put in a smaller amount of money each time and not have to worry about whether or not they get enough back. The earlier that you start, the more money you can put in.
This means that you won’t have to worry as much about how much you put in because it will all end up adding up to be quite a bit. Unlike 401K you are not going to rely on your work for this so if you are still trying to find a career you can still open up an annuity account that will allow you to be able to put in the money that you will come to rely on later on in life.
Should you decide to wait until you are older you are going to need to make sure that you are prepared to make higher payments. While this is not something that will be required, you can put in however much you want.
However, you are not going to be able to get a whole lot out of your annuity if you wait until you are older and make smaller payments. The money will not have as much of a chance to add up over time and allow you to get more money once you retire. However, most people that are older are better established financially and can afford to do this.