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.
How They Work. There are basically three types of tax deferred annuities: fixed, variable and equity-indexed. Fixed annuities give you a guaranteed monthly income during the payout phase based on a guaranteed rate of return agreed upon when you signed up.This income is of course affected by inflation.For an extra fee your income can be adjusted for inflation by increasing it by a few percentage points each year.ixed annuities give you a guaranteed monthly income during the payout phase based on a guaranteed rate of return agreed upon when you signed up. This income is of course affected by inflation. For an extra fee your income can be adjusted for inflation by increasing it by a few percentage points each year.