Are you fully prepared for your life after retirement? The time after retirement is usually considered as the golden and leisurely period of life, but without planning it can also be the hardest part of your life. You all must have some plans for your retirement. There are numerous choices for retirement planning and annuities are one of brilliant retirement saving plans among them. In this article you will find some valuable information about deferred annuities. Deferred annuity allows its holder to compile enough funds on tax deferred basis for long term future goals, such as retirement.

"An annuity in which its contract provides that payments to the annuitant are delayed until certain thresholds have been attained (e.g., when the annuitant attains a certain age)--also called a deferred annuity."

Deferred annuities are like personal retirement accounts where an individual lock his/her savings for retirement years. Mainly there are two types of deferred annuities, fixed deferred annuities and variable deferred annuities. Fixed deferred annuities are investments at minor risk and with lower growth potential. As name indicates these annuities offer fixed and guaranteed rate of interest. Fixed deferred annuities invest in fixed rate securities like bank certificates of deposit and government bonds. Annuitant receives income at certain interest rate for a specified period of time and after that a new rate is determined by issuer for next set of period.

Variable deferred annuities allow funds to grow on tax deferred basis for long term objectives. These annuities invest funds in stocks, bonds etc. and interest rate is determined on basis of performance of underlying assets. Variable deferred annuities investments range from very low to very high risk and reward investments. These annuities are professionally managed through a variety of investment portfolios.

Variable annuity program goes through two phases. During first phase funds are contributed by annuitant for long term potential growth and during second phase annuity holder starts receiving income payments from annuity fund. Variable annuities prove much beneficial to annuitants. The assets of annuity holder spring up on tax defer basis. They don’t need to pay any taxes till the withdrawal of funds. Annuitants have option to transfer their deferred annuity funds to other type of investment plan and annuitants will not be responsible to pay any tax on such transfer,

For more info on annuities, click here or call an Annuity Specialist at AnnuityForLife.com, 1-888-261-623