No. of Recommendations: 3
He is absolutely describing an immediate annuity, not a deferred annuity. He will only be getting his principal back for many years before he starts to earn any interest. You mention a "Period Certain" annuity, but he is talking about a life time annuity.

I stand corrected. You are indeed correct.

A tax deferred annuity does not provide checks sent to you each month but the interest builds up tax deferred.

They can do both, but that is neither here nor there. The fact that the OP is does indeed appear to be illustrating an immediate annuity makes that a moot point.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.