When it comes to retirement planning, deferred annuities are an increasingly popular option. Deferred annuities offer a variety of advantages that can help you reach your retirement goals. Here are some of the key benefits of deferred annuities.
1. Tax Deferral: One of the primary advantages of deferred annuities is the ability to defer taxes on your earnings. With a deferred annuity, you can invest your money and let it grow without having to pay taxes on the earnings until you begin to withdraw the money. This can be a great way to maximize your retirement savings.
2. Flexible Investment Options: Deferred annuities offer a variety of investment options, including fixed, variable, and indexed annuities. This allows you to choose the type of annuity that best fits your needs and goals.
3. Guaranteed Income: Deferred annuities can provide you with a guaranteed income stream in retirement. This can be especially beneficial for those who are concerned about outliving their retirement savings.
4. Death Benefit: Deferred annuities also offer a death benefit. If you pass away before you begin to withdraw your money, your beneficiaries will receive the remaining balance of your annuity.
5. Low Fees: Deferred annuities typically have lower fees than other types of investments. This can help you maximize your returns and reach your retirement goals.
Deferred annuities can be a great way to save for retirement. They offer a variety of advantages, including tax deferral, flexible investment options, guaranteed income, a death benefit, and low fees. If you’re looking for a way to save for retirement, a deferred annuity may be the right choice for you.