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delayed annuity

By Terry Savage on August 08, 2016 | Investments

-can I buy delayed annuity be start payng 5 yrs or so after purchase? Website gives only 13 months delay. -are there any plan available which will provide inflation protection? thanks in advance.

Terry Says

You can buy a Deferred Income Annuity, and definitely start receiving income 5 or more years in the future.  The "inflation adjustment' is part of the pricing of the benefit.  That is, if you agree to defer for longer, then you get a larger check.   But once that amount is determined, you don't get an inflation adjustment.  To price these Deferred Income Annuities go to www.SPIA.direct   (not dot-com, but dot-direct.)   You give them your age, gender, state of residence, when you want the annuity to start paying -- and how much money you want to deposit in the annuity now (can be from money inside your IRA or outside -- see my recent column on that at my website), and then you get quotes from several insurance companies offering a monthly payment amount.

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