Annuities are a contract best designed as Guaranteed Retirement cash flow vehicles. 

We recommend you use the guarantees offered by insurance companies to Pensionize your retirement income needs

Annuity Basics

There are two primary classes of annuities, immediate and deferred. Immediate annuities are typically funded with a single premium payment and begin their distribution phase immediately. However, there is a subclass of Immediate annuities that allow the immediate income to be deferred for a short period of time.


Deferred annuities are a more complex contracts with two basic phases, accumulation phase and distribution phase. Deferred annuities are funded with either a single premium or a flexible (many) premium schedule. Single premium funded deferred annuities are typically used for IRA and 401K rollovers for qualified asset management, but are also used for non qualified asset management. We will speak more to deferred annuities construction below.

Deferred Annuity Phases

There are two phases of a deferred annuity, the accumulation phase and the distribution phase. The accumulation phase begins when assets are deposited into the contract and continue until the the contract owner decided to begin the distribution phase. Assets grow on a tax deferred basis during the accumulation phase. 

Deferred Annuity Types

Deferred Annuity Construction

Accumulation Account:

The accumulation account is also the contract value account. The surrender value is the accumulation account minus the surrender fee, if it applies. 

Income Benefits Account: 

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