Final answer:
An immediate annuity funded by a single premium allows for payment to begin almost immediately or within one year. This is a strategy aligned with the financial advice of paying yourself first, which suggests saving a portion of your income immediately for retirement.
Step-by-step explanation:
When an immediate annuity is funded with a single premium, the annuitant may begin receiving payments either immediately or within one year after the premium has been paid. This type of annuity is designed to start payouts soon after it is purchased, contrasting with deferred annuities, which start payments at a future date, often upon retirement.
The concept of 'Paying yourself first' is a common financial strategy advised by Financial Advisors, which entails setting aside a certain percentage of your income for retirement and saving before addressing other expenses. In context with annuities, this means that when you receive income from any source, you should immediately allocate a portion towards your retirement savings which could be in the form of purchasing an annuity.