Income Annuity or Deferred Annuity?
What is a Deferred Annuity?
A deferred annuity can be funded with either a lump sum or through a series of smaller contributions. This allows you the flexibility to contribute according to your unique financial situation. It is an investment that can assist you in achieving your retirement goals. You set aside funds today and earnings accumulate tax-deferred on your investment. Once you have accumulated the money you will need for retirement, you have many options about when and how you receive your income.
A deferred annuity can be a:
A deferred annuity may be right for you if:
- You have several years until retirement.
- You want to accumulate assets on a periodic basis.
- You want to begin payments for your retirement or any other need at a later date.
What is an Income Annuity?
An income annuity is funded with a lump sum contribution, automatically securing you a steady stream of income payments for the rest of your life, or for a specific period of your choosing. You may select from several income benefit options that can be customized to meet your needs. Once an income benefit option is selected, you'll begin receiving income checks (on a quarterly, monthly or annual basis).
An income annuity may be right for you if:
- You want to receive a guaranteed payment each month to supplement your income.
- You want to receive payments from your initial investment immediately.
- You want monthly payments from a lump sum.
Guarantees based on the claims paying ability of Principal Life Insurance Company.