Deferred Income is unearned revenue on the investment made. It is popularly known as deferred revenue. In other terms Deferred Income is referred to Longevity Annuity. The Myths of Deferred Income/Longevity Annuities are they are not useful in long-term retirement investment plans. But the facts are the revenue garnered in this product is awesome. It is taken at a future date as agreed in the contractual document. The payout in deferred income/longevity annuities begins from a few years as per client specifications. Also, it could be up to 50 years with some clients.
Deferred Income or Longevity Annuities hold center stage
The Myths of Deferred Income/Longevity Annuities is you cannot lock your investment for a longer period. The Facts are you get a steady payout so that your retirement is put at ease. The cash flow generated is of a significantly higher value in deferred income. It is a Myth that people are living longer than before. The Facts are deferred income are holding center stage. It is essential for people who plan their cash flow for a longer period.
Make your savings stretch
The Myths are you cannot make your savings stretch by investing in deferred income/longevity annuities. But the Facts are a future cash flow is created by looking through a different lens. The Myths are they do not pay out more than other investment options. The Facts are deferred income offer more than expected returns. It is the best investment option to choose in the current environment of increasing life expectancy. There can be essential things to do if you live longer. The Facts are Deferred Income or Longevity Annuities fit in.
Deferred Income or Longevity Annuities stabilize income base
The Pros of Deferred Income/Longevity Annuities is a way to stabilize the income base. It is necessary to look for an investment strategy. Whereas, the Cons are it is not for those who are thinking about the possibility of outliving their investment. In short deferred income gives out the highest payouts. This allows you to invest in diverse income streams.
Target-date income plan
The Pros of Deferred Income/Longevity Annuities is that it offers target date income. Whereas the Cons is, it does not offer any opportunity for long term investment. The Pros of Deferred Income allows you to be flexible with other investment options. You are open to a varied source of income streams. But the Cons of Deferred Income does not help cover up multiple expenses.
Deferred Income or Longevity Annuities ensure positive cash flow
The Pros in Deferred Income/Longevity Annuities ensure positive cash flow. But in some cases, unexpected expenses are met with complete confidence. The Pros identify existing sources of income in guaranteed payout from other sources. Whereas, the Cons are Deferred Income/Longevity Annuities benefits do not meet your retirement plan as per your dreams.
