Tax deferred annuity – best way to secure your retirement life

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<h1>Tax deferred annuity – best way to secure your retirement life</h1><strong> Author: <a href='http://www.articleseen.com/profile_Robert Maddy Cooks.aspx'>Robert Maddy Cooks</a></strong><br /><p>Planning your life is very important in every stage. People who do not plan their lives in advance are bound to face various kinds of problems in their life particularly in the old age, post retirement. Therefore, it is recommended and advised that people should start planning their old age and retirement life quite in advance. Infact, people who have foresightedness start planning for their retirement and start making savings for retirement from the day they get into a job. Investment in annuities is one such kind of planning, which proves to be very effective and useful on the long run. There are various kinds of annuity plans that are available but tax deferred annuity is the most commonly sought plan by majority of the old people. Though the period of investment in deferred annuities is long, but the returns are also good and you can have a safe and tension free retired life. As the name says, deferred annuities are investments for long periods of time and hence the use of the word ‘deferred’ in the annuity name. There are two marked phases in deferred annuities – one is the ‘savings and investment phase’ and the other is ‘retirement income phase’. In the ‘savings and investment phase’, you can invest money in the plan. The investments can be done in small amounts over a period of time or in lump sum amount. It is better if the investment phase starts quite early so that you can save and invest more money in the plan and the returns from the same are also higher. The insurance company that offers the tax deferred annuity provides interest on the amount that is deposited and invested. In deferred annuities, usually the rates of interest that are offered are fixed. When the period of investment gets over and ‘retirement income phase’ starts in tax deferred annuity plans, you can select the way in which you want to take money. While some people prefer to take lump sum amount at one time, some others prefer taking it on monthly basis, quarterly basis or half-yearly basis as per their requirement. This flexibility is one of the greatest advantages in deferred annuities. Therefore, it is quite clear that guaranteed source of income can be received in retired life with investment in deferred annuities plans. The money that is invested or got as returns is tax free. This is the reason that it is also known as tax deferred annuity.</p><strong>About the Author:</strong><br />Robert Cook is a business consultant who has good information on <a rel="nofollow" href="http://www.immediateannuities.com/content_pages/lesson.htm">deferred annuities</a> and <a rel="nofollow" href="http://www.immediateannuities.com/library_articles/taxation_of_nonqual_annuities.htm">tax deferred annuity</a>. For more information he recommends you to visit <a rel="nofollow" href="http://www.immediateannuities.com/">www.immediateannuities.com/</a>.<p> Article Source: <a href='http://www.articleseen.com/Article_Tax-deferred-annuity-–-best-way-to-secure-your-retirement-life_114764.aspx'> http://www.articleseen.com/Article_Tax deferred annuity – best way to secure your retirement life_114764.aspx</a></p>

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Keywords : Tax Deferred Annuity, Deferred Annuities,

Category : Finance : Investing