- Will you be able to create income that truly lasts your entire lifetime?
- Will you trust it and stick to that plan even through periods of market volatility?
The Solution - Deferred Income Annuity (DIA)
That's where guaranteed income annuities may be able to help. These products are able to deliver a stream of income that you can rely on for either a predetermined period of time, or for the rest of your life. And, specifically, deferred income annuities (DIAs) let you lock in a stream of guaranteed income years before retirement, while reducing the effect of market volatility on your retirement income plan.
The Advantages of a DIA
The advantage of a DIA is that it offers a degree of certainty.
You can secure a portion of your retirement income years before entering retirement so you don't have to wait until the moment you retire to know what your investment will deliver in income. You can gain peace of mind and some flexibility with your other assets.
For some, using a portion of retirement assets to lock in guaranteed income for the first several years of retirement is an attractive option; knowing the income is secure, some investors may have the confidence to invest part of their retirement assets more aggressively during those early years.
While DIAs are an efficient way to generate income, keep in mind that you are giving up access to the assets you dedicate to this solution and the opportunity for potential market performance.
In next blogpost, we will show you a case study how DIA combined with your 401k investment could provide secure retirement income.