Tax Deferred Annuity and Deferred Annuities Provide Secured Retired Life

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<h1>Tax Deferred Annuity and Deferred Annuities Provide Secured Retired Life</h1><strong> Author: <a href='http://www.articleseen.com/profile_Robert Maddy Cooks.aspx'>Robert Maddy Cooks</a></strong><br /><p>It is very important to do proper financial planning in order to lead a secured and happy life after retirement. This is so because after retirement the income of the individuals is reduced and with the amount of pension which they receive they are not able to meet their necessary requirements. This is the reason why there is a need for planning for retirement so that they can get an extra income and lead their life without any financial worries. The best retirement plan is annuity because it provides a steady flow of income after retirement. Annuities are of different types; tax deferred annuity is a type of annuity and is considered to be safe for investment. In this type of annuity like any other type of annuity you will have to invest a certain amount of money towards the annuity for a particular period of time. Then after the maturation of the annuity you will receive the amount of money invested by you together with the returns on the basis of the interest rates offered by the insurance company. In tax deferred annuity, you will not have to pay taxes until you withdraw the amount of money in the annuity fund. No tax deduction until the withdrawal of the amount helps your investment to grow to a great extent which results in increased returns. A deferred annuity is also a type of annuity. There are two phases in this type of annuity; they are: a) accumulation phase, b) payout phase. During the accumulation phase the investors are required to make payments towards their annuity account. They can make the payment either in lump sum or in regular installments for a certain period of time. During the payout phase the insurance company makes payments to the investors. These annuities offer tax benefits as well as death benefits. deferred annuities can be categorized into two types: fixed deferred annuity and variable deferred annuity. Fixed deferred annuities provide guaranteed income to the investors and on the other hand variable deferred annuities provide returns on the basis of the valuation of the stocks, equities and bonds in the market. Hence, you can you can invest in fixed deferred annuities if you want guaranteed returns and if you can bear risk to some extent then you can opt for variable deferred annuities. Therefore, tax deferred annuity and deferred annuities can help in solving your financial worries post retirement and enable you to lead a secured life.</p><strong>About the Author:</strong><br />Robert Cook is a business consultant who has good information on <a rel="nofollow" href="http://www.totalreturnannuities.com/annuity-deferred/">deferred annuity</a> . For more information on <a rel="nofollow" href="http://www.totalreturnannuities.com/annuity-deferred/">deferred annuities</a> he recommends you to visit <a rel="nofollow" href="http://www.totalreturnannuities.com/">www.totalreturnannuities.com/</a> .<p> Article Source: <a href='http://www.articleseen.com/Article_Tax-Deferred-Annuity-and-Deferred-Annuities-Provide-Secured-Retired-Life_144486.aspx'> http://www.articleseen.com/Article_Tax Deferred Annuity and Deferred Annuities Provide Secured Retired Life_144486.aspx</a></p>

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Keywords : Tax Deferred Annuity, Deferred Annuities,

Category : Finance : Finance