Immediate vs. Deferred Annuities

Income Now or Growth First? · Plain-English Guide

Immediate Annuity (SPIA)

Income starts within 30 days of your deposit.

• ✓ Guaranteed monthly paycheck for life
• ✓ No market risk, no management needed
• ✓ Simple — one deposit, income starts
• ✓ Best for ages 65-75+
• ✗ Can't access lump sum once started
• ✗ No growth phase

Example: $200,000 deposit at age 67 → approximately $1,150-$1,300/month for life

Deferred Annuity

Your money grows first, income starts later.

• ✓ Tax-deferred compounding for years
• ✓ Higher monthly income when activated
• ✓ Flexible — choose when to start income
• ✓ Best for ages 50-65
• ✗ Income doesn't start immediately
• ✗ Surrender charges if withdrawn early

Example: $200,000 at age 58, deferred 7 years at 6% → income base of ~$300,000 → approximately $1,500-$1,750/month at 65

How We Help You Decide

At Advanced Capital Management, we don't push one type over the other. We look at your whole picture — when you need income, what other sources you have (Social Security, pension, savings), and what your monthly expenses look like in St. Petersburg.

Sometimes the answer is a combination: part immediate for income now, part deferred for higher income later. We call this an "annuity ladder" and it's one of our most popular strategies for Pinellas County retirees.