Steady Income in Your Retirement with Deferred Fixed Annuities
Deferred fixed annuities. Single Premium Deferred Annuity (SPDA) Single Premium Deferred Annuity (SPDA). Earn a guaranteed minimum interest rate. The amount of the benefit paid out at retirement can be a fixed payment or vary depending on your preferences. This feature can help when planning a budget for your later years and provide long-term retirement income.
Deferred Fixed Annuity Stages
A deferred fixed annuity has two periods. The first part is the accumulation period, where the money (minus any applicable charges) you put into the annuity earns interest. The earnings grow tax-deferred as long as you leave them in the annuity. The second period is the payout period, where a carrier would pay income to you or your chosen beneficiary without delay of probate.
Forever Young Financial and Insurance offers several types of deferred fixed annuities from our carriers:
Single Premium Deferred Annuity (SPDA), with or without a First-Year Interest Bonus. The interest bonus applies during the first certificate year only and will not be paid after the first certificate year. The SPDAs are purchased with one single premium payment.
Fixed Premium Deferred Annuity (FPDA), with or without a First-Year Interest Bonus. The interest bonus applies during the first certificate year only and will not be paid after the first certificate year. The FPDA allows you to make premium payments according to your preferences.
Deferred Fixed Annuity Advantages
Tax advantages. A big benefit of owning a deferred fixed annuity is that you can accumulate money on a tax-deferred basis. This means that the earnings in your annuity are not taxable until you “annuitize,” or begin receiving payments, at a time when you may be in a lower tax bracket. Withdrawals of earnings are taxed as ordinary income.
No contribution limits. If you’re looking to minimize taxes while saving for your retirement and have contributed the maximum amounts to other tax-advantaged accounts, annuities may be the answer. Unlike other retirement vehicles, annuities allow you to continue contributing even after you’ve retired and whether you have earned income or not.
Estate planning benefits. If you die prior to receiving money from an annuity, your beneficiary will receive the annuity value, although he or she will have to pay taxes on the amount.
Liquidity. You can withdraw up to 10 percent of your annuity value each certificate year without paying a surrender charge