There are two parts to a fixed deferred guaranteed income annuity
Annuity August 1st, 2008There are two parts to a fixed deferred guaranteed income annuity, a current interest rate and a minimum guaranteed interest rate. The minimum guaranteed interest rate is the lowest rate that your annuity will earn. This rate is stated in the contract. The current rate is linked to the reserves and interest the company earns on their portfolio, or for an external reference or index. You can buy a fixed deferred annuity and start your interest income thirty days later. However, it is better to wait twelve months, and then take the previous years earned interest through the second year.
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