Here's How Much Income You Can Get With a $100,000 Annuity
The numbers aren't etched in stone, but they're an approximate idea of what to expect at this time.
Overview
Do you need to turn a lump sum of money into a reliable income? Dividend stocks are one option. Bonds are another. The former can't outright guarantee income, or, for that matter, that your principal won't suffer some sort of setback, although owning quality stocks certainly curbs this downside. Bonds aren't exactly guaranteed to pay interest, although, again, if you buy quality, it tamps down much of this risk.
There's another often-overlooked choice for income-seeking investors, though. That's annuities.
Details
They're technically an insurance product, although their underlying value is ultimately a basket of stocks and/or bonds. But the insurance companies offering annuities have gotten very, very good at pooling their customers' funds to minimize risk and volatility, allowing them to (reasonably) safely guarantee consistent income from your purchase.
Source
Originally published at www.fool.com.