Individual Annuities - Deferred Non-Variable
A Deferred Non-Variable Annuity is a type of annuity contract specifically designed for long-term retirement planning. This financial product allows an individual to invest funds that accumulate over time, with earnings based on a guaranteed fixed interest rate. Importantly, as a non-variable annuity, the returns are not dependent on market performance, offering a stable growth rate.
Key Features
- Guaranteed Interest Rate: The annuity guarantees a fixed interest rate, ensuring a predictable growth of invested funds regardless of market fluctuations.
- Deferred Payments: Payments from this annuity begin at a predetermined future date, which can be aligned with the retiree’s planning, allowing flexibility in retirement income design.
Advantages of Deferred Non-Variable Annuities
- Financial Security: Guarantees a steady and predictable income for future needs, suitable for conservative investors seeking stability in their retirement plans.
- Tax Benefits: Earnings on these annuities grow on a tax-deferred basis, meaning taxes on interest income aren’t paid until funds are withdrawn, aiding in efficient tax planning.
Regulatory Guidance
These financial products are regulated under state laws in the U.S. For more specific details regarding regulations, interested individuals should consult The National Association of Insurance Commissioners and relevant state legislation detailing annuity contracts.
Additional Resources
- SEC.gov - Annuities
- Related statutes in Title 26, Subtitle D, Chapter 1, Subchapter D, Part I of the U.S. Code, provIDing insight on tax implications for deferred annuities.
Investors interested in this type of annuity should consult with a financial advisor or a certified insurance professional on how it could fit into their retirement planning strategy.
