Tax Deferred Annuities - Single Premium Deferred Annuity

Tax deferred annuities are contracts for people who want to save on a tax-deferred basis for many years, and then convert to a payout once they retire. Being different than immediate annuities, tax deferred annuities do not become payable until a specified number of years after purchase. The single premium or regular premiums are capitalized during the deferred period, then the built up capital is converted into an annuity.

What is a Single Premium Deferred Annuity

A single premium deferred annuity, or SPDA, is an annuity you purchase with a single payment. You get a guaranteed interest rate for a specified period of time, and the taxes on the interest you earn are deferred until you make a withdrawal. Single Premium Deferred Annuities are ideal for anyone who wants to let their money grow risk-free while deferring income taxes, with the goal of creating income later in life. One of our most popular products is a single premium deferred annuity set at seven years at the fixed interest rate of 6.25%, a guaranteed rate considerably higher than investment CD's.

Is a Single Premium Deferred Annuity Right For Me?

Single Premium Deferred Annuities are excellent financial vehicles for many individuals either planning for retirement or already at a retirement age. Consider Single Premium Deferred Annuities if:

• Your goal is to invest money with minimal risk and you are attracted to the security of other financial vehicles such as CD's and Treasuries
  
  
• It is likely that you are not going to need any of the money you are investing until after you are 59 ½ years old



• You do not need current income but will need income sometime after turning 59 ½ and you will likely be in an equal or lower tax bracket



• You are already 59 ½ (or older), you require current income, and the Single Premium Deferred Annuity offers a guaranteed interest rate that is higher than the interest rate on CD's and Treasuries.

Contact the Annuities Institute today to find out more information on how Single Premium Deferred Annuities can make a significant and secure contribution to your future retirement plans.