Who Do Annuities Make Sense For?
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2 responses to “Who Do Annuities Make Sense For?”
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Annuities make sense in a number of situations. The basic need that an annuity addresses is lifetime income. If you have an amount of money and that money must last the rest of your life, an annuity might provide a suitable return. Annuities are often used to accumulate money without incurring current income tax obligations.
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Tax deferred annuities have three crediting methods: interest rate crediting, indexed crediting and separate sub account crediting or debiting, i.e. you can lose money. So each crediting method may dictate the product suitability for the type of tax deferred annuity a long term/ high tax bracket saver or investor might consider.
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