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Deferred
Annuity Phases: There are two phases of a deferred annuity.
The accumulation phase, where you allow your money
grow for a while. During accumulation, your money will grow tax-deferred
until such time you take it out, you may choose either a lump
sum payment
or a series of payments.
You decide when to take income from your annuity and when to
pay the taxes. Having control over your taxes is a benefit of
annuities.
The payout phase. The payout phase begins once
you take income from your deferred annuity.
The majority of people choose to do so during
retirement. Deferred
Annuity Rates
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