There are many advantages in choosing an immediate annuity as part of your retirement portfolio. You can start collecting monthly checks as soon as a month after purchasing the annuity. This money is guaranteed for the term of the annuity; there are many options for term length. It can be a specified amount of time, your lifetime, your spouses lifetime, and even a specified time frame for inheritants to receive payments after your death. Tax-deferral is another benefit. Annuities are not taxed as they grow over the years, the taxes are paid with the monthly withdrawals, whenever those begin. The low-risk and cautious strategy of most annuities is seen as a stress-free piece of the big picture of retirement.