But you could sell the CD and buy a deferred annuity instead, Mr. Landis says.
Your Labrador would probably have better sense than to buy a deferred annuity.
But he tells his clients to be wary of their instinct to defer income (such as by owning a tax-deferred annuity).
With a deferred annuity, you pay now and hope to accumulate assets through either a variable product that invests in equity mutual funds or a fixed product that offers bond-like returns.
He proceeded to tell me proudly that he had sold more of a certain type of deferred annuity than anyone else in the U.S. Obviously, no matter what his clients need, they get a deferred annuity.
The choice of annuities has long been built into TIAA-CREF retirement plans, and close to 50% of TIAA-CREF participants opt for a guaranteed deferred annuity as an investment option, allocating 40% of their contributions to the option.
's Select Deferred Income Annuity, a product introduced last April that now accounts for 20% of the insurer's income annuity sales.
The breach of fiduciary duty allegations stem from the fact that the Plan assets are invested in a tax deferred variable annuity.
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Annuity payments can be deferred until retirement or advanced age, at which point tax would be due on the income component of the annuity payments.
They were issued by Manulife (subsequently taken over by John Hancock) and were called Flexible Purchase Payment Deferred Combination Fixed and Variable Annuity Contracts Non- Participating.
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