Question 1

Do payouts adjust for inflation?

Accepted Answer

Standard fixed payouts do not. Some contracts offer CPI riders at extra cost.

Question 2

Is the payout taxed?

Accepted Answer

Non-qualified annuities tax gain portion; qualified annuities are generally fully taxable as ordinary income. Consult a tax professional.

Question 3

Can I cancel after annuitization?

Accepted Answer

Annuitization is typically irreversible. Consider partial annuitization to retain liquidity.

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