Deferred Annuities


In the Annuity marketplace, “Deferred Annuities” can describe two components.

1) In terms of Timing of your income, you can have either an Immediate Annuity, in which income payments start immediately, or you can have a Deferred Annuity, where income payments start in the future.

2) And in terms of Taxation, all annuities enjoy Tax-Deferred Appreciation .

Secondary Market Annuities, fixed annuities, indexed annuities, and variable annuities allow you to compound and grow your investment by tax-deferring appreciation. Taxes will be due in the future, but for now, gains compound tax deferred.

Generally, when people refer to ‘Deferred Annuities’ they simply refer to the timing of the cash payments from the insurance company.  However, when you choose to place your money with an insurance company and grow that investment Tax Deferred, you are compounding the gains without tax, and can take those compounded gains out at a future date.

Tax deferred compounding growth, what annuities offer, is often referred to as ‘triple compounding’.  Not only do you earn money on your principal, but you also earn money on your interest, and your earn money on what would otherwise be spent on taxes in other less competitive investments.  Triple compounding can make an annuity investment really shine when compared to CD’s or bonds that incur taxes each year.

For more info on how an annuity can help you grow your investments and retirement income, be sure to sign up to our site and get our AST Flex Strategy videos to learn more on the tax deferred benefits an annuity offers.

Immediate Annuity


The Immediate Annuity has several names- Instant Annuity, Single Premium Immediate Annuity, Single Life Annuity, and Single Payment Annuity, among others.  All refer to the same thing- An Immediate Annuity is a contract with an insurance company that immediately converts your savings into an income stream.

In terms of Timing, the payments of income and principal commence immediately, in contrast to Deferred Annuities which build for some time before converting into payments.

Immediate Annuity Benefits:

The Immediate  Annuityprotects your retirement with steady, predictable income.  You can learn more about the Pros and Cons of Immediate Annuities here. Also, there are a wide array of annuity options and riders that add benefits and duration to an Immediate Annuity income stream.

For example, if you want to remove all the responsibilities and risks associated with managing your money thru retirement, the purchase of an immediate annuity can give you a guaranteed income stream for life, no matter how long you live.   Or, if you have assets that make you ineligible for Medicaid, an immediate annuity may allow you to remove the assets from your estate.

How an Immediate Annuity Works:

You can buy an immediate annuity with funds available from a 401k, IRA, savings account, life insurance policy, inheritance, or even the sale of a home or major asset. The insurance company you select promises to give you an income stream you select in exchange for an upfront premium expense.  The company assumes all investment risk and calculates the income amount based on your age-weighted life expectancy. You can choose how often you receive a payment from the annuity, such as monthly, quarterly, or yearly. The amount of income you receive is based on the amount of money you initially contribute, plus a number of factors including your age, sex, income option selected, and interest rates at the time of purchase.

Get our report to learn how an immediate annuity can help, if:

  • You want certainty that you won’t outlive your income,
  • Your retirement expenses are not covered by your monthly pension payment,
  • You want to eliminate management of your retirement savings,
  • You want to protect assets from high nursing home costs.

Please Contact Us and let us find the best Immediate Annuity for you.