This weekend I visited my family back in Cincinnati and got to meet my Dadâs new iPad for the first time. I donât have enough money for this fancy technology so Iâve never really used an iPad before.
Deferred Annuities. A deferred annuity grows tax deferred until the contract is annuitized (put into a payment stream) or surrendered (paid out as a lump sum). This type of annuity is a vehicle for accumulating savings for a future goal, such as retirement, and eventually distributing the value.
A single premium immediate annuity is the basic annuity. It provides a lifetime of monthly income in exchange for a single premium. A deferred annuity is different in that it provides that the stream of income does not start immediately, but later, and that the company will accept deposits to the annuity until it starts the monthly income payments.