How To Find The Best Deferred Income Annuity Guarantees
The Annuity Man
Deferred Income Annuities (DIAs) are relatively new to the annuity landscape even though they have the same structure as the oldest annuity type on the planet...Single Premium Immediate Annuities (SPIAs). The primary difference between the 2 is when you start the income stream. With SPIAs, income can start as early as 30 days from the policy issue date and deferred up to one year. DIA income can start as soon as 13 months form the policy issue date, and you can defer the income start date as far out as 30 to 40 years with some carriers.
DIAs have no annual fees, no market attachments, and no moving parts. They are a simplistic, easy to understand future pension strategy. The lifetime income stream is primarily based on your life expectancy (life expectancies if "joint") at the time the payments start. Interest rates play a secondary pricing role.
DIA income is a combination of return of principal plus interest. DIAs can be used in Traditional IRAs, Roth IRAs, and non-IRA (i.e. non-qualified accounts). The contractual guarantees of the DIA policy are the same, but the taxation of the income would be different depending on what type of account is used for the DIA purchase.
Currently, there are less than 20 annuity companies that offer DIAs. All carriers should be shopped for the highest contractual guarantee for your specific situation.
Contact Stan The Annuity Man for the best and highest DIA quotes in the country using all carriers through Stan's proprietary annuity calculators. You can also receive Stan's 6 Annuity Owner's Manuals for free and under no obligation.