Do you know what a split annuity is?

A split annuity is a combination of an immediate income annuity and single premium tax deferred annuity. The immediate annuity guarantees income for a period of time, and the deferred annuity grows with a fixed interest rate while the income is being taken from the immediate annuity. If done correctly, the income is taken while the deferred annuity compounds. At the end of the guaranteed income period, the deferred annuity is ready to be used as the new income vehicle!