Starting an annuity is a great step towards a financially sound future. But how do you get one started? You should be able to start an annuity with $5,000 to $10,000.

How Do You Start an Annuity?

When you decide to buy an annuity, you are deciding to convert a lump sum of money into a steady, guaranteed income stream.

The first step to buying an annuity is deciding the type you need. There are two categories — deferred and immediate. Deferred is probably the annuity you’re likely more familiar with. This is where you put in an initial investment, let it grow during the accumulation phase, and receive structured payments over time. The other option is where you put in an initial investment, then immediately start receiving structured payments without a waiting period.

When you sign on to your chosen annuity, you’ll have to make an initial investment. This will depend on how much you decide to invest and the type of annuity.

Initial Investment by Annuity Types

While the average minimum initial investment is anywhere from $5,000 to $10,000, it varies based on the type of annuity you purchase:

Other Annuity Costs

With your first investment, you will start earning towards a solid financial future. It’s important to prepare for other expenses besides this initial investment as well. Be sure to ask your potential annuity provider about these fees:

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