An income annuity covers various retirement expenses that are not always covered by Social Security or pensions. The customizable contract issued by an insurance company converts an investor’s premiums into a guaranteed, fixed-income stream. It reassures investors of a steady income flow, throughout post-retirement. This retirement plan is only as good as how well one manages the contract. With proper expert guidance, an investor can learn how to reap the benefits of an income annuity. Learn about the types One of the easiest ways to benefit from annuities is to learn about the available types. There are various options: immediate, deferred income, indexed, variable, and fixed deferred annuities. Each type might suit different investor profiles. Learning about them in detail will help one make a more informed investment decision in the long run. Split the money One can divide their money across various annuity contracts using a bucket strategy to stay on budget. The method allocated for short-term, intermediate, and long-term expenses. For instance, if one has recently retired, one of the contracts can be set up to start immediately, while another can be set up in five years when the spouse plans to retire. A third contract will be initiated in 10 years, when one might expect a higher health care bill.