Annuities - Deferred Income Annuities

It's taking that second vacation instead of giving it a second thought.  It's planning a room renovation with confidence instead of preparing it with doubt. It's spending more time with your family instead of worrying about how much you're spending. You've worked hard and done all the right things to plan for retirement.  Keep a good thing going by adding guaranteed income to your future cash flow.  Consider a deferred income annuity to add a guaranteed portion of your income in retirement.  

Most people need to pay more attention to how long they'll live. This means they also misjudge how long their money will need to last. Chances are, a long retirement is in your future. Over the last 40 years, average life expectancy has increased by more than ten years. Statistics show that for a 65-year-old couple, there's an almost 20% chance of one living to age 95.

A deferred income annuity provides a guaranteed income stream and can be purchased before or after retirement. The money used to purchase your annuity—which you invest as a lump sum or in a series of payments—generates a stream of income that starts on a future date that you choose. Each income payment comprises a return of your premium, interest paid by the insurer, and a component from risk pooling, offered only by insurance companies.

With a deferred income annuity, you purchase a fixed investment vehicle. You are not investing in or exposed to the equity markets, meaning you will not participate in any market fluctuation or performance. Instead, by purchasing a deferred income annuity, you trade liquidity and full access to your money for predictable, uninterrupted income payments guaranteed for life. These are paid to you by an insurance company, creating a strategy to insure your retirement assets through an income stream.

Receive income for your entire life. Did you know people tend to underestimate how long they will live? Chances are, a long retirement is in your future. So plan accordingly—the income from a deferred income annuity ensures that you will continue to receive payments no matter how long your retirement is.

Enjoy guaranteed income that is not tied to market fluctuations. Some people withdraw money from their investments to help pay for retirement. However, stock market losses can have a significant impact on this strategy. Think about it: Withdrawing money from a declining investment can quickly shorten how long it will last. By adding a deferred income annuity to your overall portfolio, you can remove some of this risk and unpredictability. Your income is fixed and not tied to the stock market, so you can count on it for retirement and the rest of your life.

Use optional features to help maintain your purchasing power. Over the past few decades, rising gas, groceries, and education prices have illustrated inflation’s impact on our lives. Conveniently, deferred income annuities can offer optional features to help protect your income from the effects of inflation, allowing you to keep up with current economic environments throughout your retirement.

When do you need your income?
Your income can start as early as two years from when you purchase your policy or as far out as 40 years. It’s up to you.

Choose to receive your income payments as frequently as monthly, quarterly, semiannually, or annually.

If you want your income to cover your spouse throughout their lifetime, you can purchase a joint life deferred income annuity.

A deferred income annuity may be appropriate for a portion of your retirement assets if you are currently in or nearing retirement and looking for lifetime income. Talk to our financial professional about how a deferred income annuity may fit into your overall retirement strategy.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

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