Deferred Immediate Annuity

Shawn Plummer

CEO, The Annuity Expert

What is a Deferred Immediate Annuity?

Deferred Immediate Annuity, or Deferred Income Annuity (DIA), is a financial product designed for long-term income planning. It allows individuals to invest money and defer receiving payments until a future date. This type of annuity is particularly beneficial for retirement planning.

Key Features of Deferred Immediate Annuities

  1. Investment Period: Money is invested for a predetermined period before income payments begin.
  2. Income Delay: Payments are deferred to a future date, often aligning with retirement.
  3. Guaranteed Income: Provides a stable, predictable income stream in the future.
  4. Tax Benefits: The investment grows tax-deferred until income payments start.

Examples of Deferred Immediate Annuity in Retirement Planning

  1. Pre-Retirement Investment: A 50-year-old invests in a DIA, planning to start receiving payments at age 65.
  2. Supplementing Pension: Someone nearing retirement invests in a DIA to supplement their pension income later.

Comparison of Deferred Immediate Annuity and Immediate Annuity

FeatureDeferred Immediate Annuity (DIA)Immediate Annuity
Payment StartFuture Date (e.g., post-retirement)Almost immediately after investment
Investment PeriodLong-term (e.g., 10-15 years)Short-term or none
Tax BenefitTax-deferred growthTax on income as received
PurposeLong-term retirement planningImmediate income requirement
Deferred Immediate Annuity

Conclusion

A Deferred Immediate Annuity, or Deferred Income Annuity, is an effective financial tool for securing a stable income in the future, especially for retirement purposes. It offers the benefit of tax-deferred growth, with income payments starting at a later, predetermined date. This makes it an ideal option for individuals looking to plan their financial future in advance. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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