Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

If you plan to use your dividend stocks to generate income in retirement and have concerns that you may live longer than your money lasts, there is a little-known and little-used investment that can help allay your worries.

The investments are QLACs, or Qualified Longevity Annuity Contracts, which come with the additional benefit of a government-supported tax break. Here’s how they work.

A Tax-Favored Annuity

QLACs are a wrinkle on deferred income annuities, or DIAs, which are annuities for which you pay a lump sum now and start receiving lifetime income sometime in the future. The attraction of DIAs is that by waiting to start drawing the income, you get a lot more income when you start receiving it.

For example, let’s say a 70-year-old man bought an immediate annuity with $100,000.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 39685645
News

The Market Wrap for October 20: Bipartisan Deal Sparks Hope

Markets experienced another week of record highs and the Dow closed above 23,000 marks for the...

Dividend Investing Ideas Center

Industries We Can Go Long/Short on During Hurricane Season

The 2017 Atlantic hurricane season has been a highly active one, with multiple storms wreaking...

Premium Shutterstock 546272707
News

You Retired Early! Now, What?

We all dream of an early retirement.

Being able to punch out, kick up our feet and not have to...