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Retirement Planning/Deferred Fixed Income annuities


I already have a fixed annuity and after the '08 recession, an advisor at the bank pushed hard for me to get a Variable annuity, he was like a used car salesman. I read how many advisors suggest staying clear of those and also learned that he would have received a big commission. I doubt he had my best interests at heart. I am now 62 and someone with Fidelity, who at least appears to be genuinely  honest, suggested I think about a "Deferred fixed income annuity" and said he earns next to nothing on those. I know it depends on one's specific finances and goals etc., but just in general do you have an opinion on Deferred Fixed Income annuities?  Thanks

Hi Lee,
Every quality financial product can have a use for the right person in the right situation. A deferred annuity means that you are going to wait to take income sometime in the future. Although it will not earn much interest, it is about as safe as you can get. If the money is "non-qualified" meaning that you it is not a rollover from an IRA, 401k or other tax deferred retirement account it can also have a significant tax advantage as well. Income from a non-qualified income annuity are not fully taxable since some of the payments is from a return of your principal. So this type of product can fit into may people financial plan quite nicely since it is guaranteed. I hope this helps, best of luck!


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David M Iannopollo


I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances. I can also show you how to take advantage of the stock market gains without the risk of loss!


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