How to get the safety, tax deferral, and guaranteed lifetime income tax deferred annuity savings accounts.
Older traditional annuities versus, the newer more flexible annuities with income riders
In the past and still offered now; are programs where you can take immediate guaranteed lifetime income
from a savings account backed by an insurance company or payment for a set period such as 10 years only. The payment amounts are based on your age and which payment option you choose…(10 years only, lifetime only; etc.)
With the traditional plans you can not change your mind if you want to get at any principal and interest that is not yet spent; should you need it. You trade access to the deposit in exchange for lifetime income payments.
Newer plans also offer lifetime guaranteed income but with other options
Tax deferred growth
Avoidance of the added expense of probate, a will , or trust in most cases. See your attorney.
You can get at cash in your account that has not been spent, should you decide to cash in any balances in stead of continuing to receive payments.. See policy for details.
The optional income rider is priced at about 3/4 of 1% per year.
The rider cost does not reduce your retirement payment and only applies to you accumulation account
which is available at death or at partial or complete surrender.
The income rider is very well suited for those that want to take income payments rather than a a lump sum.
With some companies the guaranteed crediting for the account used for income payments can be as high as 6% until spent. Some companies only guarantee the crediting for the first 10 yrs. so you would want to see your advisor before making decisions on any annuity regardless of your goal.
For more details; see your financial advisor and/or insurance broker. For people that might want to defer
taking income until required by the IRS etc
, I have attached an example of a program well suited for many that want the option of a level income payment or one that increases with inflation below:
With this and all financial decisions you should see the advice of an experienced, insurance broker,
tax advisor, and/or an attorney experienced in insurance matters.
To contact the author, Randy Taylor, or to schedule as a speaker :
Linked in Recommendations:http://www.linkedin.com/in/randytaylorlifeandannuities
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Licensed agent/broker since 1983
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