How to Invest in Cryptocurrency Mutual Funds

For countless seniors, the quest for consistent earnings post-career tops the priority list.

One effective guard against exhausting your savings prematurely lies in an annuity, designed to hold off distributions until a set future date.

While annuities frequently get slammed for being tangled webs of fees and complexity, income annuities sidestep much of that criticism — usually coming with simpler terms and lighter charges.

Wondering where the catch is? Income annuities demand a hefty upfront investment and, frankly, it’s a tall order—if not a no-go—to shop around. Here’s a breakdown of what a $1 million buy-in translates into monthly paychecks.

Unlike other types of annuities featuring variable returns and murky contract mechanics, immediate and deferred income annuities offer clarity — what you sign up for is largely what you’ll pocket.

Key Variables Affecting Your Monthly Income

The actual monthly sum you’ll pocket depends on a handful of critical elements, including:

• Your age
• Your gender
• Your state of residence
• The insurer you pick, all boasting AM Best ratings of A or above:

• Integrity Companies
• Lincoln National Life Insurance Company
• Symetra
• Minnesota Life Insurance Company

For the figures below, Florida was picked as the annuitant’s residence and no cost-of-living adjustment (COLA) was included, since most income annuities don’t offer this. Quotes were gathered on July 15, 2025.

Case Study 1: 65-Year-Old Woman – Immediate Income Annuity

A 65-year-old woman opting for an immediate income annuity that pays out for her lifetime alone can anticipate monthly earnings between $5,617 and $6,438.

Should she hold off five years to buy the same product at age 70, her monthly take-home climbs to a peak of $7,271.

Now, if preserving a legacy for family matters — by adding a 10-year period certain (guaranteeing payments to beneficiaries if she dies within the first decade) — her payouts are nudged down a bit, with top quotes dropping from $6,438 to around $6,281 monthly.

Case Study 2: 50-Year-Old Man – Deferred Income Annuity

A 50-year-old gentleman locking in a deferred income annuity that kicks in at 65, complete with a pre-payout death benefit, can expect the following monthly sums:

• $14,248 from Integrity Companies (AM Best A+)
• $12,217 from Symetra (AM Best A)

Worth noting: only two of the five companies surveyed offered deferred income annuities.

Adjusting the scenario, what if he waits until 55 to buy the annuity, getting payments starting at 70? Even though the delay remains 15 years, pushing payouts back boosts his monthly income, with offers ranging from $14,118 to $16,208.

Case Study 3: Joint-Life Immediate Income Annuity

Joint-life annuities keep the monthly checks coming for the surviving spouse after one annuitant passes. For a 65-year-old man coupled with a 60-year-old woman, monthly payments fall between $4,736 and $5,558 assuming the surviving spouse receives 100% of the dead partner’s benefit.

Cutting the wife’s survivor benefit to 50% (meaning she gets half of her late husband’s payout) flips the script: monthly payouts climb, ranging from $5,467 to $6,111.

What if You Invest Less? Adjusted Payouts by Investment Amount

For those without the full $1 million to deploy — which is the majority — here’s how payouts shift at lower tiers ($500,000, $250,000, $100,000) with other conditions unchanged.

$500,000 Annuity Payments

• 65-year-old woman, immediate annuity: $2,809 – $3,217 monthly
• 50-year-old man, deferred annuity: $6,166 or $7,215 monthly
• Joint-life immediate annuity: $2,368 – $2,776 monthly

$250,000 Annuity Payments

• 65-year-old woman, immediate annuity: $1,404 – $1,607 monthly
• 50-year-old man, deferred annuity: $3,067 or $3,608 monthly
• Joint-life immediate annuity: $1,184 – $1,386 monthly

$100,000 Annuity Payments

• 65-year-old woman, immediate annuity: $562 – $641 monthly
• 50-year-old man, deferred annuity: $1,207 or $1,443 monthly
• Joint-life immediate annuity: $474 – $551 monthly

Drivers Behind Income Annuity Payout Variations

Although these quotes offer a decent snapshot of what to expect, multiple factors have an outsized influence on your guaranteed monthly income during retirement, and tweaking any can either bump up or squeeze down your paycheck.

Age at Payout Start

Your payout rate swells the older you are when the annuity kicks off, since the insurer anticipates fewer total payments.

Deferred Annuities: Payments are postponed to a future date, sometimes years or even decades out.

Choosing to defer lets your principal amass interest and compound, leading to heftier payouts — but patience is a must, as income won’t flow immediately.

Unlike other deferred annuities that accept premium installments over time, deferred income annuities generally demand one lump-sum upfront, requiring a substantial nest egg earlier in life.

Payment Structure

• Life-only annuities last the duration of your lifetime, maximizing monthly income.
• Joint-life annuities extend payments through the surviving spouse’s life after one partner dies. Survivor payouts can be set at 50%, 66.6%, 75%, or 100% of the deceased spouse’s benefit. A higher survivor portion means less monthly income during the couple’s joint lifetime.
• Annuities with Guaranteed Periods (like a 10-year period certain) promise beneficiaries continue receiving payments if the annuitant passes away within that time. This guarantee causes a slight dent in monthly sums.

Interest Rates

Income annuity disbursements ebb and flow with interest rate trends. A higher rate environment typically cranks monthly payouts upward.

By July 2025, payouts were more generous than they’d been throughout 2012–2020, a stretch marked by historically low rates. Still, these recent payments fall short of the peak seen between May 2023 and September 2024, when interest rates climbed to a 20-year zenith.

Inflation Guard

Electing an inflation rider lowers your initial payout but lets payments grow annually by roughly 1–5%. Since most income annuities skip inflation adjustments, some retirees forgo this option to maximize their starting income.

Income Annuities Versus Other Varieties

Income annuities are straightforward, wallet-friendly instruments. You hand over a lump sum to an insurer, who, in exchange, commits to sending you monthly payments for life — a pension-like promise.

SPIAs and deferred income annuities steer clear of linking returns to stock market swings or investment vehicles. Hence, no tangled subaccounts or fickle participation rates — your monthly check stems from a fixed interest rate locked in at purchase.

But not all’s perfect: payouts rarely keep pace with inflation, so dollars bought with an annuity pre-inflation surge may shrink in value over time.

And perhaps the biggest stumbling block? The hefty upfront capital needed to reap meaningful monthly earnings.

Financial pros typically suggest earmarking no more than 25% of your total savings toward income annuities. To snap up a $1 million annuity, ideally your nest egg totals $4 million or above. Reality check: many Americans simply don’t have such deep reserves.

Investing less means smaller monthly payoffs: a 65-year-old woman could pocket up to $6,438 monthly with a million-dollar annuity, but just $562 if she puts in $100,000.

The size of the initial investment can make many hesitate — plus, income annuities usually lock up your principal once payments begin, restricting access to your funds.

Given these drawbacks, some turn to other annuity types, despite their complexity and often higher fees.

For instance, certain hybrid annuities may provide a taste of market upside while cushioning losses — although they come with intricate terms that can cap gains.

In sum, income annuities offer a solid path to guaranteed retirement income. Your payout hinges on numerous factors: age, gender, annuity type, and extras like survivor or death benefits. As evidenced, a $1 million annuity might yield anywhere from under $5,000 up to $14,000-plus monthly, depending on the exact plan.

Those considering annuities should shop around extensively, comparing quotes from several insurers. If an income annuity aligns with your financial roadmap, a savvy financial advisor can help navigate options and tailor the right fit.

Essential insights to keep in mind

Having a slew of brokerage accounts is technically limitless — though the more you own, the trickier your financial juggling act becomes. But spreading your investments across different platforms might actually slash your fees and snag you better margin loan deals compared to sticking with just one.

If a single brokerage falls short on perks you crave — say, juicy interest on idle cash, stellar research tools, or juicy sign-up bonuses — then diversifying your accounts lets you cherry-pick the very best from each provider.

Blurring lines: Banks versus brokerages

The distinction between banks and brokerages is getting fuzzier than ever. Giant financial players like Bank of America mix banking and brokerage services, but their customer support might be just okay. Meanwhile, another firm may boast an intuitive trading platform yet skimp on discounts for mutual fund trading. Varied features like these make owning multiple brokerage accounts a smart move to tailor your investing experience.

How many brokerage accounts are ideal?

One account means fewer headaches — fewer logins to remember, tax forms to manage, and beneficiaries to designate. Keeping everything consolidated cuts down on the risk of missing something important, making your investing journey smoother and more straightforward.

5 compelling reasons to diversify your brokerage holdings

Let’s dive into why spreading your assets across multiple accounts might just pay off handsomely.

1. Slashing your costs

Competition among brokers runs fierce, especially on fees. The 2019 move by Interactive Brokers and Charles Schwab to roll out zero-commission stock and ETF trades sparked a domino effect industry-wide. With commission fees out of the picture, investors can zero in on other costs where brokers still differentiate themselves.

Top-notch customer support and research perks

Some brokerages, including Charles Schwab, stand out for quick access to real humans on the phone — no endless website digging required. They consistently rank high in client satisfaction, sharing in-depth proprietary research, earnings forecasts, and a trove of educational content on retirement, investing tactics, college funding, and personal finance.

Access to margin loans with competitive rates

Margin lending lets you borrow against your brokerage account equity, essentially overdrawing your account and incurring interest on the borrowed chunk. One broker stands tall here: Interactive Brokers, a heavy hitter known for ultra-low margin rates that track the Federal Reserve’s benchmark, topping out at around 1.5% above the federal funds rate. Most competitors charge much heftier fees in comparison.

What’s more, as the Fed hikes or cuts rates, Interactive Brokers adjusts margin costs in tandem — and bigger loans actually come with lower rates. While margin trading suits experienced investors aiming to amplify returns, it also serves as a quick-access emergency loan, though with the usual caveat: borrowing ups your risk.

4. Earning interest on your idle cash

Some brokerages and robo-advisors offer appealing interest rates on cash holdings, generally fluctuating with Fed rate moves to become some of the most rewarding spots to park your money short-term without exposure to stock market swings. This makes them a go-to if you want to grow your cash stash efficiently.

Compared to traditional banks doling out meager returns on savings accounts (even as interest rates climb), these high-interest cash management accounts shine. Plus, many let you spend directly from the account and toss in free debit cards — making your money easily accessible for everyday needs.

5. Sweet bonuses and promotional offers

Opening accounts with different brokers can bring you extra perks — think cash bonuses for bringing your assets over. The bigger your deposit, the juicier the reward, sometimes reaching into the thousands. Even modest funders can score bonuses, with some promos asking for as little as $50 or $100, so sniffing out these deals is definitely worth your time.

Quick fact

According to data, brokerage account bonuses totaled over $500 million industry-wide in recent years, with some firms offering sign-up incentives reaching up to $2,000 for new investors who meet funding thresholds.

When to consider opening another brokerage account

Deciding whether to have multiple brokerage accounts boils down to personal preference and investment goals. Here are some questions to mull over:

• Do you prefer all your eggs in one basket? Some folks value simplicity and want everything under one roof, while others don’t mind the extra task of juggling several accounts.
• Are there unique services that two different brokers provide? Maybe one excels in options trading while the other offers unbeatable mutual fund deals — splitting your assets accordingly can maximize your advantages.

Frequently Asked Questions

Is there a cap on the number of brokerage accounts you can hold?

There’s no official limit to how many brokerage accounts you can open. That said, SIPC protection typically covers up to $500,000 per person per broker, making it sensible to diversify across firms to spread out risk.

Can investments be transferred between brokerages?

Most common assets—stocks, bonds, ETFs—can usually be moved from one brokerage to another. However, some mutual funds or specialized products might not be transferable if the receiving broker doesn’t offer them.

Would consolidating accounts be a good move?

If you favor simplicity, want to streamline your portfolio, or prefer to track all your holdings in one dashboard, merging your accounts might make sense.

Final thoughts

The escalating rivalry among brokerage firms is a huge win for investors. Are you leveraging it fully, or still sticking to just a single investment account?

Each broker brings unique strengths to the table, and by spreading your holdings across multiple platforms, you can handpick what suits your strategy best — trimming costs, boosting benefits, and ultimately crafting a more rewarding investment journey.