As workers are increasingly less likely able to rely on employee benefit and employer sponsored retirement plans to solve all of their retirement needs, the deferred income annuity is an ever important solution. Years ago it was common for a company to have what is known as a defined benefit plan and worker/employees could know what they'd have along with the "gold watch". Today's worker employee is more likely to have a 401(k), SEP or other so-called defined contribution plan which puts the risk of adequacy (of contributions) and the investment risk on the worker/employee. Some employers provide matching contributions. Others don't have plans at all. Higher income employees may have hit the contribution maximum ( "maxed out") but the future shows that such plans will provide an inadequate level of income replacement.
With a deferred income annuity an individual can put away money now and it will buy a known amount of money at some pre-defined future starting point. There are no limits to what an individual can put into a deferred income annuity. Minimums are typically ten thousand ($10,000). You can even say that you want a certain amount of monthly, quarterly, semi-annual or annual annuity income and we can tell you what it will cost. You can set up a plan where you will buy a series of deferred income annuity contracts each year to help you achieve your goal.
A deferred income annuity serve the role of insurance for your portfolio. If you are a risk taker with investment experience and confidence in your abilities, you should still consider using a deferred income annuity to at least guarantee a baseline of income in case things don't turn out as you expect.
A Deferred income annuity is only available from a small handful of insurance companies who take on the risk of you outliving your assets.
Please contact us if you would like to see a quote. Please note that I only seek business in those states where I am licensed