Creating Income for a Lifetime

Guaranteed Income for Retirement

An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future. Annuities can provide virtually guaranteed income for life, and for a price, you can even get inflation protection. For this reason, annuities can be appropriate for investors with extremely low risk tolerance. Typically you should consider an annuity only after you have maxed out other tax-advantaged retirement investment vehicles, such as 401(k) plans and IRAs. If you have additional money to set aside for retirement, an annuity’s tax-free growth may make sense, especially if you are in a high-income tax bracket today.


An immediate annuity is a contract under which you give a company a lump sum of cash and they agree to give you a fixed amount of money per month, starting immediately. Generally, immediate annuities are intended to create lifelong income streams, but there are some that only pay for a set period. Some of the advantages are things like long-term stability, tax-deferred income, and monthly income payments for the rest of your life. This type of annuity is most appropriate for people who are already retired and are looking for peace of mind regarding their retirement income.


Pre-retirees and other people who don’t need the money right away may want to consider a deferred annuity, which delays payment by a number of years but makes higher guaranteed monthly payments. It’s designed for long-term savings and, unlike an immediate annuity, which starts annual or monthly payments almost immediately, investors can delay payments from a deferred annuity indefinitely. During that time, any earnings in the account are tax-deferred.


Fixed annuities pay guaranteed rates of interest, which makes them appealing to investors wary of the stock market’s ups and downs. What also makes them appealing are their low investment minimums – usually $1,000 to $10,000 – and the fact that the interest they pay escapes taxation until you make a withdrawal. While interest rates tend to be lower, they’re somewhat predictable.

Frequently Asked Questions

No, we do not charge a fee to the client for our services.

P2 has over 20 years of combined industry experience.

A Medicare Supplement policy, sometimes called “Medigap,” is a private insurance policy that can help pay for some of the health care costs that Original Medicare doesn’t cover. Medicare Advantage Plans are network-based plans offered by private insurance companies that have a contract with Medicare and provide additional benefits beyond Original Medicare like vision, hearing and dental benefits.

You must have Original Medicare Part A and Part B, live in the plan service area and not have End-stage renal disease requiring dialysis.

No, Medicare covers medical expenses related to illness or rehabilitation. Skilled Nursing is covered by Medicare for up to 100 days if you qualify for a skilled medical need. Long-term care services involve someone needing assistance with activities of daily living such as bathing, dressing, grooming and eating.

People rely on a variety of payment sources which include personal funds, private financing options like long-term care insurance or government programs like Medicaid.

There are no age requirements to purchase long-term care insurance. However, because of health changes that take place most often after people reach their 50s, we advocate that long-term care planning start in your 50s.

The need for life insurance persists long after the kids have graduated college or the house has been paid off. As long as premiums are paid, permanent life insurance provides a lifetime of protection. Also, a permanent life insurance policy will accumulate cash value on a tax-deferred basis and the death benefit is tax free to the beneficiary. Once approved, your policy cannot be cancelled by the insurer and the insurance will remain in-force regardless of your health status.

A final expense insurance policy is used to pay for funeral services and a burial when the named insured dies. Although the policy is called “final expense insurance,” it is no different from a traditional life insurance policy with a small monetary value.

When you buy an immediate annuity, you choose the number of years that your guaranteed income stream will last. A lifetime income annuity provides guaranteed income for as long as you are alive.

It’s a way to diversify your portfolio and make sure that your basic retirement expenses will be covered. For most retirees, the overriding concern is for a secure income stream for the future. The annuity pays principle and interest for your entire life. In this way, the lifetime income annuity operates much like a pension plan from a former employer.