- Different types of annuities
- July 16, 2015
There are a number of advantages to investing in an annuity. A tax-deferred annuity allows you to put aside funds you pay into the annuity for as long as you want without worrying about exceeding federal tax limits.
Investors also have more flexibility. An annuity provides a variable or a fixed return – without federal tax limitations.
“Annuities have a long history of producing guaranteed income and tax-deferred accumulation,” advised Brian Ashe, President of Brian Ashe and Associates, Ltd. in Lisle, Ill., and Treasurer of the Life and Health Insurance Foundation for Education (LIFE). “They certainly need to be considered as a possible financial tool in a portfolio.”
Also, there is added security. An annuity offers a fixed-income payout option that grants an income that cannot be outlived, according to the LIFE Foundation.
For many people, annuities offer an opportunity to accumulate funds that are free of income and capital gains taxes. And that can help provide a guaranteed stream of income in the future or pay for other large investments such as to pay for your child’s college tuition.Pages: 1 2
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