Delaware Life Variable Annuity: Your Guide to Retirement Income

Introduction

Are you nearing retirement and wondering how you'll generate a steady income stream to support your golden years? Consider a Delaware Life Variable Annuity, a flexible and customizable financial product that offers potential growth and income in one solution. This guide will delve into the intricacies of Delaware Life Variable Annuities, empowering you to make informed decisions about your retirement planning.

What is a Delaware Life Variable Annuity?

A Delaware Life Variable Annuity is a type of investment contract that combines the features of an annuity with the investment potential of a variable annuity. It offers:

• Tax-deferred growth: Contributions grow tax-deferred until withdrawals begin.
• Guaranteed minimum income: A minimum percentage of your investment is guaranteed to be available as income.
• Investment flexibility: You choose how to invest your annuity funds from a range of investment options, including mutual funds and managed accounts.

Benefits of a Delaware Life Variable Annuity

• Potential for higher returns: Variable annuities offer the potential for higher returns compared to traditional fixed annuities.
• Tax-deferred growth: Allow your money to grow tax-free until withdrawals begin.
• Guaranteed income: Provides a guaranteed stream of income for life or a specified period.
• Investment flexibility: Customize your annuity to meet your risk tolerance and financial goals.
• Death benefit: Upon your passing, your beneficiaries may receive a death benefit based on the value of your annuity.

Considerations for Choosing a Delaware Life Variable Annuity

• Investment risks: Variable annuities are subject to market fluctuations and investment risks.
• Fees and charges: There may be various fees and charges associated with variable annuities, such as surrender charges and investment management fees.
• Flexibility: Consider the flexibility you need in your annuity, such as the ability to make additional contributions or change investment options.
• Suitability: Ensure that a variable annuity aligns with your financial situation, risk tolerance, and retirement goals.

How to Choose a Delaware Life Variable Annuity Provider

• Reputation and financial strength: Choose a provider with a strong reputation and financial stability.
• Investment options: Review the range of investment options available and assess their suitability for your risk tolerance and financial goals.
• Fees and charges: Carefully compare the fees and charges associated with different providers.
• Customer service: Consider the provider's customer service record and responsiveness.

Delaware Life Variable Annuity Taxation

• Contributions: Contributions are made with after-tax dollars.
• Investment growth: Earnings accumulate tax-deferred until withdrawn.
• Withdrawals: Qualified withdrawals during retirement are taxed as ordinary income.
• Non-qualified withdrawals: Premature withdrawals before age 59½ may be subject to a 10% IRS penalty in addition to ordinary income taxes.

Four Useful Tables for Delaware Life Variable Annuities

Tips and Tricks for Delaware Life Variable Annuities

• Maximize your contributions: Contribute as much as you can within the limits set by your provider.
• Review your investment options regularly: Monitor market conditions and adjust your investments as needed.
• Consider a guaranteed income rider: Protect yourself against market fluctuations by adding a guaranteed minimum income feature.
• Compare providers: Shop around for the best combination of features, fees, and investment options.
• Consult a financial advisor: Seek professional guidance to ensure a variable annuity is right for you and your specific situation.

Conclusion

A Delaware Life Variable Annuity can be a valuable tool for retirement planning. With its potential for growth, income, and tax-deferral benefits, it can provide peace of mind and financial security during your retirement years. By carefully considering your needs, researching providers, and understanding the taxation implications, you can harness the power of a variable annuity to create a secure financial future.