Here are the two features that make annuities so
appealing to retirees … income-tax-deferred saving plus
the ability to get income. If you roll money in your employer-sponsored
plan to an annuity, you can go two routes … either a deferred
annuity or an immediate annuity.
Direct Route
Immediate Annuity
Scenic Route
Deferred Annuity
Start taking income right away
Your account balance can continue to grow income-tax-deferred
until withdrawn
Continue to save income-tax-deferred
Start taking income some time in the future
After income begins, your account balance can continue to
grow income-tax-deferred until withdrawn
“Are you a traveler who packs for any eventuality?”
If I looked in your suitcase, would I find sun block
and an umbrella? Then a deferred annuity might appeal. It lets
you continue to save now, but easily switch to income in the
future.
Are You Nearing Retirement?
