is a tax-deferred agreement that provides an income for a
particular time period or for life. They are of two types:
- Deferred annuities: which allows you
to increase your assets tax deferred and change your account
balance to income payments at a future date.
- Immediate annuities: which generally
allow you to receive income payments instantly.
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Deferred annuities- help
you save money for retirement. Your money grows consequently
tax deferred. A deferred annuity has two
stages- savings and investing, and retirement income.
you to make a single, lump sum payment and you make multiple
contributions over time.
Immediate annuities- facilitates you in making
regular income payments and for your loved ones. It also has
extra benefit like that it provides income for a set period
of time only. This kind of agreement is ideal for people who
want an income with many agile options.
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