Why do you need a deferred annuity?
If you’ve maxed out your 401(k) or IRA contributions, a deferred annuity may be a smart addition to your retirement plans because annuity earnings during the accumulation phase are tax-deferred. And, by converting your accumulated value into a guaranteed income stream, a deferred annuity can provide the same feeling of security you get from earning a regular paycheck—even when you are no longer working.
What Are The Benefits
Annuities offer lots of options that benefit you, including: The ability to invest in many different types of investments. Tax deferral on earnings until funds are withdrawn and favorable tax rates upon withdrawal. Protection from creditors. Provision of a lifetime source of income that goes beyond Social Security and defined-benefit pension plans. Death benefits designed to pay your beneficiary a specified minimum amount
Safeguard against uncertainty
Unlike many retirement options, fixed deferred annuities earn a guaranteed minimum rate of interest with the opportunity for higher returns as well. Your contribution grows predictably to fund an income you can count on—regardless of market fluctuations.