How to Shop for an Immediate Annuity

These annuities guarantee steady retirement income for life, but just how much you collect depends on your age when you invest.

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Annuities come in all shapes and sizes—some with complex calculations that try to do a little bit of everything, often with high fees. But immediate annuities are simple: You hand over a lump sum to an insurance company, and they promise to pay you a fixed amount every month or year for the rest of your life.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.