This weekend I visited my family back in Cincinnati and got to meet my Dadâs new iPad for the first time. I donât have enough money for this fancy technology so Iâve never really used an iPad before.
Deferred Annuities. A deferred annuity grows tax deferred until the contract is annuitized (put into a payment stream) or surrendered (paid out as a lump sum). This type of annuity is a vehicle for accumulating savings for a future goal, such as retirement, and eventually distributing the value.
Annuity is a tax deferred plan which implies that you do not pay any tax for the tie period of annuity, and tax cut is applied when you start receiving the monthly payment. Despite being tools for future saving, there are sharp differences between annuities and 401k plans.