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.
Surrender Charges. Annuity contracts are issued by insurance companies for a specified investment term, typically from four to seven years. For each year the investment is held, the penalty for early withdrawal changes, getting lower the longer the annuity is held. This is called a surrender schedule.