What is The Minimum Amount of Money Needed to Buy a Fixed or Index Annuity?
Most annuities have minimum buy amounts and may or may not allow multiple payments. Most single premium annuities start at $10,000 or $25,000. You can also buy a better rate for amounts over $100,000 or $250,000.
You can buy flexible premium annuities. These offer a payroll deduction with minimum purchase payment requirements of $100. Depending on the product, there are annuities that need a single lump sum with a certain minimum requirement.
I like the flexible premium annuities that allow you to add money as you see fit. When the stock market is up, it is a great time to peel off some of those profits and add them to your index annuity, that can’t go down. Also by using the penalty free liquidity you can pull up to 10% (with most carriers), so when the market has had a pull back its a great time to pull money from the annuity and add it back into the market.