Category Archives: Deferred Income Annuities

Uneasy About the “A” Word? You’re Not Alone

Published on May 14, 2019

When presented in the context of retirement income planning, fixed income annuities have proven to be the most appropriate and natural commercial solution for providing sustainable lifetime income.

Protect Against Elder Fraud with Fixed Income Annuities

Published on June 12, 2018

An important, although unplublicized, benefit of fixed income annuities is protection against elder fraud.

The Perfect Storm for a Tax Credit Longevity Annuity Plan

Published on November 7, 2017

A Tax Credit Longevity Annuity Plan, or TCLAP, would create tax-favored private pension plans while also providing for long-term care benefits.

Are You Using This Tax-Favored Sustainable Income Strategy?

Published on June 27, 2017

If you have a sustainable income need and it isn’t immediate, one or more nonqualified deferred income annuities can provide a unique tax-favored solution.

Replace Unpredictable RMDs with Secure Lifetime Income

Published on April 4, 2017

Fixed income annuities can be purchased in retirement plans to provide sustainable lifetime income that can better meet one’s retirement needs than unpredictable and fluctuating required minimum distributions, or RMDs.

Is Cognitive Impairment Part of Your Retirement Income Plan?

Published on February 14, 2017

The basic purpose of a retirement income plan is to develop tax-efficient strategies that are designed to provide predictable income streams to meet an individual’s or family’s financial needs during different stages of retirement. A comprehensive plan should also include provisions for addressing potential life-changing experiences. One such event that’s generally associated with the latter…

Income-Proof Your Aggressive Portfolio

Published on January 31, 2017

With the Dow Jones Industrial Average (DJIA) crossing the elusive 20,000 barrier last Wednesday for the first time, a lot of people are excited about investing in the stock market. Never mind the fact that the DJIA has tripled in price from its low of 6,470 on March 6, 2009, increasing at a mind-boggling average…

The 401(k) Unlevel Playing Field

Published on August 9, 2016

With the Summer Olympics in Rio de Janeiro underway, sports are on my mind. There’s an unlevel playing field in the retirement planning world. Forgetting about defined benefit plans which are in a league of their own, 401(k) plans are the clear favorite for employees who want to save for retirement. 401(k) participants enjoy a…

Period Certain is Cheap Insurance on SPIAs and DIAs

Published on July 19, 2016

Single premium immediate annuities (SPIAs) and deferred income annuities (DIAs) are often used to provide sustainable lifetime income to replace a portion of employment income in retirement. Both are tax-favored when nonretirement funds are used to purchase them since a portion of each income payment is a nontaxable return of principal. The primary difference between…

Deferred Income Annuities Comparing More Favorably with FIAs with Income Riders

Published on December 1, 2015

If you’re planning for retirement and you want to receive sustainable lifetime income beginning at a future date, deferred income annuities (DIAs) and fixed index annuities (FIAs) with income riders are potential suitable choices. These are the two types of deferred fixed income annuities that are sold by life insurance companies. The question is which…

Optimize Deferred Income Annuity Pre- and Post-Income Start Date Payout

Published on November 24, 2015

Deferred income annuities, or DIAs, are one of the two types of deferred fixed income annuities sold by life insurance companies, the other being fixed index annuities, or FIAs, with income riders. DIAs are the simpler of the two products to understand and are often the most suitable choice in many situations. A DIA is…

Don’t Defer Your QLAC Purchase

Published on September 15, 2015

I was recently asked by CNBC personal finance writer Tom Anderson, who was writing a story on qualified longevity annuity contracts, or QLACs, “What are the biggest mistakes clients make when buying QLACs?” My answer, which was quoted in Tom’s September 9th An Option for Those Who Fear Outliving Their Money article, was not purchasing a…