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Contributed by mm | August 21, 2006 10:41 AM PST
Why should you consider annuity as an integral part of your investment plan? Here is our point-by-point breakdown of annuity's many benefits:
From :
Tax deferral on investment earnings
Many investments are taxed year by year, but in annuities, the investment earnings -- capital gains and investment income -- aren’t taxable until you withdraw money. This tax deferral is also true of 401(k)s and IRAs; however, unlike these products, there are no limits on the amount you can put into an annuity. Moreover, the minimum withdrawal requirements for annuities are much more liberal than they are for 401(k)s and IRAs.
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What Is An Annuity? (August 21, 2006)
In its most general sense, an annuity is an agreement for one person or organization to pay another a stream or series of payments. Usually the term “annuity” relates to a contract between you and a life insurance company, but a charity or a trust ...
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