8:00 AM Central Time is 7:00 AM Mountain Time. Mountain Time is one hour behind Central Time.
In 2009, Ted purchased an annuity for $60,000. The annuity is to pay him $1,500 per month for the rest of his life. His life expectancy is 120 months. A). Ted is not required to recognize any income until he has collected 40 payments (40 $1,500 = $60,000).
That being said, over $200 billion of annuities are sold every year with multiple trillions already on the books. With 10,000 baby boomers retiring each year and needing the types of contractually guaranteed strategies that annuities can provide, itâs important to understand all of the costs involved. This is especially the case if you are considering adding an annuity to your portfolio to solve for a specific goal like lifetime income.