Every saver and investor needs to review their suitability for the financial or insurance products they’re considering, annuities are no exception. Tax deferred annuities held over long periods can generate significant financial impact on a high tax bracket saver or investor. First you need to establish a personal financial profile that includes a risk tolerance assessment to determine which crediting method is suitable: fixed interest rate crediting, indice crediting or separate subaccounts using equity and bond instruments.
Non-qualified annuities should be considered as part of your retirement income strategy. Some planners use a combination of immediate and deferred annuities with different policy durations as a “laddering technique” using the exclusion ratio of an immediate annuity for the initial income and the accumulated tax deferral advantage of the other deferred annuities to generate income as well.
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Non-qualified annuities should be considered as part of your retirement income strategy. Some planners use a combination of immediate and deferred annuities with different policy durations as a “laddering technique” using the exclusion ratio of an immediate annuity for the initial income and the accumulated tax deferral advantage of the other deferred annuities to generate income as well.