If you have never heard of a deferred income annuity, get ready, because you’ll probably be hearing a lot about them in the near future. And honestly, you should want to!
Deferred income annuities address a major weakness that is a part of current tax-deferred retirement plans, such as 401(k)s: what to do with your retirement plan when you actually retire.
That’s where deferred income annuities come in. They’re a valuable tool you can use that can preserve your investment capital, and make sure that you have a steady income for the rest of your life – no matter how long you live.
They can even turn your defined contribution 401(k) into something resembling the traditional defined benefit plans of yesteryear. That should interest anyone and everyone who is planning for retirement.