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.
Fixed and variable annuities are types of deferred annuity contracts. With both account types, your premiums are invested for a number of years, after which you can make a lump sum withdrawal or convert the contract to an income stream.n both types of annuities, you also have to pay income tax and a 10 percent tax penalty on withdrawals of tax deferred earnings that you make before reaching the age of 59 1/2. Variable annuities offer you the potential for unlimited growth since there are no caps on rises in mutual fund share prices.