Savvy Saver's Guide to Deferred Annuities

Annuities are a potential investment and income source in retirement. The SECURE 2.0 Act provided new incentives for deferred-income annuities (DIAs) called QLACs.

What are QLACs?
How do they work?
Are they right for your retirement financial plan?

Some financial advisors are strong advocates. Others are just as passionate about avoiding annuities. Meanwhile, investors, even those with substantial savings for retirement, lack familiarity with DIAs and Qualified Longevity Annuity Contracts (QLACs). Studies show that many people near or in retirement are unfamiliar with annuities and related terms like “longevity risk,” even if they have substantial retirement savings.

This book, Savvy Saver’s Guide to Deferred Annuities: Hidden Costs and Alternatives You Didn’t Know You Had, addresses these issues and more to assist potential buyers to make the decision of whether to buy a QLAC or deferred-income annuity.

Topics include:
• The advantages of deferred-income annuities (DIAs) including the tax advantages of QLACs
• The biggest drawbacks of DIAs and QLACs-including inflation
• The modifications, or riders, available for basic DIAs and QLACs, and why you want to avoid most of them
• The tax time bomb hidden within the tax “advantages” of QLACs
• The Hidden Costs of DIAs and QLACs
• The Biggest Cost of DIAS and QLACs
• Alternatives to DIAs and QLACs, including the inflation-protected DIA you didn’t even know you had

The book concludes with a quiz including the specific questions you should answer to decide whether a DIA or QLAC is right for you, and how much you should invest if it is.

Daniel McDonald, author of the award-winning retirement financial planning book From Savvy Saver to Smart Spender: How to Pick a Tax-Wise Retirement Withdrawal Strategy(available at amazon.com and other online book retailers), once again provides his independent insights as a new retiree grappling with these same questions. Dan approaches the issues from his been-there, done-that perspective, guided by his experience as a certified Dave Ramsey financial coach, AARP volunteer tax preparer, and attorney with 38 years of experience.

Savvy Saver’s Guide to Deferred Annuities will help you invest your hard-earned retirement savings to live the worry-free retirement you’ve always dreamed of.