What
Are Deferred Annuities?
Deferred annuities are contracts that defer payments
of income, installments or a lump sum until the buyer elects
to receive them. This type of annuity has two main phases, the savings
phase in which you deposits are made, and the income phase
in which the plan is converted into an immediate annuity and payments
are received.
Deferred
annuities can be an additional option for retirement planning
portfolios.
What Are The Tax Advantages?
Earnings on deferred annuities are taxed only
upon withdrawal, providing the annuity buyer with a tax
benefit. This type of annuity also provides a death
benefit, so that the beneficiary of the annuity is guaranteed
the principal and the investment earnings.
Comparisons Are NOT Always Simple
Every company seems to have its own "hook"
to attract buyers: the Interest Credited, Bonus Interest, No Surrender
Charges (after x years), and many others. In searching for the
"right" annuity, we begin with finding the ones with the
worst commission paid to the broker. We find these are generally
the best annuities for the client.
