Single Premium Immediate Annuity (SPIA)
An important ingredient to the Crash Proof recipe, SPIAs guarantee immediate income for a set period of time, or life. By incorporating SPIAs into the Crash Proof system, retirees start receiving income from their nest egg immediately. These unique investment vehicles allow you to receive immediate income distributions from a portion of their nest egg, while the rest of your savings can be used to generate large gains over time in different investments.
What is a Single Premium Immediate Annuity?
A Single Premium Immediate Annuity (SPIA) allows you to take a portion of your money and turn it into an income stream immediately. So if during your working years you have become comfortable receiving a fixed paycheck and knowing exactly what you would be earning each month, a Single Premium Immediate Annuity can be used to replace the paycheck that you have become so used to.
Our team at First Senior Financial Group educates clients on how SPIAs may be used to satisfy a retiree’s specific needs. For example, consider a client entering retirement that was making $8,000 a month during their working years. The team at First Senior Financial Group would show them how a SPIA can be used to generate $8,000 a month for this client for however long necessary, while helping the client invest the rest of their nest egg in other high growth Crash Proof Vehicles.
In a crash proof retirement, single premium immediate annuities are typically used on an as needed basis.
Single Premium Immediate Annuities are not used in all Crash Proof recipes, but do serve as an important tool for some retirees that like the features they offer. Understanding a SPIA and the features they provide is the first step towards a Crash Proof education. Our well-informed staff would love to sit down with you and discuss in detail how a SPIA may or may not be a good fit for you.
We encourage anyone in or approaching retirement to come in for a free education. The key to successful retirement planning is asking a lot of questions and becoming a smart self-advisor, and at First Senior Financial Group we proudly aim to make each client just that.