1. 61667 POINTS
    Steve SavantPRO
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

    Video Transcript: Hello, everyone. I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show "Steve Savant's Money: The Name of the Game."

    I'm answering questions from insurancelibrary.com, and today's question: Is a deferred income annuity a good idea?

    Well, a lot of people like to buy and shop for blocks of income. You can actually go out and figure out what kind of income you're going to need to subsidize your basic domestic expenses during retirement.

    A deferred income annuity will be able to give you a block of income. It could be for a time certain. It could be for the rest of your life. It depends upon your time line and what you're looking for.

    But you'll be surprised that most of the people that buy deferred income annuities also buy an inflation rider, a cost-of-living rider, to it so that every year there's an adjustment made for your income: a block of income that you purchased, plus it goes up, let's say, 3% every year annually. And if you buy a lifetime DIA, that premium will go up every year, all the way out until the last day that you live.

    Well, that's our consumer question for today. If you have any questions, just submit them to www.insurancelibrary.com.
    Answered on July 21, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    All investments are evaluated based upon different risk indices. A Deferred Income Annuity provides the greatest guarantee of a lifetime income. You cannot outlive your savings. A Deferred Income Annuity is not taxed during the accumulation period. A Deferred Income Annuity has both a current and guaranteed interest rate. If these characteristics are foremost in your list of concerns, then a Deferred Income Annuity would be the uniquely suitable investment for you.
    Answered on February 13, 2015
  3. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! Depending upon what your desired goal is, a deferred annuity can be an excellent investment. What makes this a good investment? Deferred annuities can provide a lifelong income stream, making it impossible to outlive. They can also be structured to continue to provide a surviving spouse an income stream. They are low risk, and have a payout amount that is easily determined. If you are someone who is looking for stability, safety and a guaranteed payout, this is a great way to go. If you are looking for a liquid or high yield investment, not so much. Thank you for asking!
    Answered on February 18, 2015
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