Annuity Information

Benefits of Annuities over CDs and other fixed Investments

Annuities offer the investor several benefits over CDs.
1) Annuities usually offer a greater interest rate
2)Deferred Annuities allow your funds to accumulate tax free
3)Annuity Income does not count toward income used to determine taxes on Social Security
4)Annuities are beneficial in estate planning
5)Annuities are more liquid than CDs
6)Heirs can receive money (usually without probate)
7)Annuities can provide immediate or future income
8)Flexible Annuities offer an additional tax deferred method of saving for retirement

A Quote from the Assistant Secretary of the U.S. Treasury

"From the standpoint of the contract holder, a deferred annuity during its accumulation period does not significantly differ from the long term certificate of deposit (which incidentally, also may be subject to penalty if it is surrendered prematurely), or any other portfolio investment which may be reduced to cash at any time. Nevertheless, interest from other portfolio investments is taxed currently whereas earnings credited to a deferred annuity are not. To the extent that annuities can be fashioned to offer interest rates that are competitive with rates paid by other financial instruments, there is little reason why a potential investor should purchase anything but a deferred annuity."

Hon. John E. Chopton Fmr. Asst. Secretary of the U.S. Treasury Testimony on Misc. Tax Bills Before Senate Finance Committee

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