A deferred variable annuity is an investment that allows you to save money for retirement. This type of annuity offers many benefits, including tax breaks and the potential to earn higher returns than other investments. This guide will discuss what deferred variable annuities are and how they can help you save for retirement. We will also discuss the different features and benefits that these annuities offer.
- What is deferred variable annuity?
- Are variable annuities deferred annuities?
- What are the benefits of investing in a deferred variable annuity?
- What are the risks of investing in a deferred variable annuity?
- How do I know if a deferred variable annuity is right for me?
- Frequently Asked Questions
- Request A Quote
What is deferred variable annuity?
A deferred variable annuity is an investment product that allows you to invest in various assets, including stocks, bonds, and mutual funds. The money you invest grows tax-deferred, so you don’t have to pay taxes on the growth until you withdraw the money. Withdrawals are typically taxed as ordinary income.
Are variable annuities deferred annuities?
Yes, all variable annuities are deferred annuities. A deferred annuity is an insurance product that allows you to invest your money and grow it tax-deferred. With a deferred annuity, you don’t have to pay taxes on the growth of your investment until you withdraw the money.
What are the benefits of investing in a deferred variable annuity?
There are several benefits of investing in a deferred variable annuity, including:
- The ability to grow your money tax-deferred
- The ability to choose from a variety of investment options
- The potential to receive income payments for life
- The death benefit protection that is provided by most annuities
What are the risks of investing in a deferred variable annuity?
There are several risks associated with investing in a deferred variable annuity, including:
- The risk that your investment will lose value
- The risk that you will outlive your income payments
- The risk that the insurance company will not be able to make good on its promise to pay you income payments for life
How do I know if a deferred variable annuity is right for me?
The best way to determine if a deferred variable annuity is right for you is to contact us. We can help you understand the risks and benefits of investing in a deferred variable annuity and can help you decide if this type of investment is right for your unique situation.
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Frequently Asked Questions
Can you lose money in a deferred variable annuity?
Yes, you can lose money in a deferred variable annuity. This is because the value of your investment will fluctuate based on the performance of the underlying investments. Therefore, if the underlying investments lose value, so will your investment. Additionally, if you withdraw money from your annuity before age 59 1/2, you may be subject to a 10% early withdrawal penalty.