After getting a boost from a federal rule change last year, deferred income annuities have been gaining sharply in both assets and interest. Advisors should now understand what these products can do for clients — and what challenges they carry.

The products are best understood in contrast with traditional immediate annuities, in which consumers give money to an insurer and receive a set amount of cash flow right away. With their deferred counterparts — known as deferred income annuities, or DIAs — consumers wait to receive payments in order to channel a larger income stream.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access