From the 1888 Press Release “InsuranceAgents.com Publishes a Guide to Tax Deferred Annuity,” investors can see the basics and benefits of tax deferred annuities. Tax deferred products may be the best annuities for you as an investor. The products allow investors’ wealth to accumulate tax free, building a solid nest egg for their future. Unlike other investments like stocks, bonds, mutual funds or CDs, annuities offer investors a guaranteed stream of lifetime income.
There are three different types of tax deferred annuities which are fixed, variable, and indexed. A fixed annuity product guarantees the investors’ rate of return over time. Variable annuities do not offer that guaranteed rate, but are subject to market changes and offer the possibility of higher rates of return over the time the account is accumulating. Indexed annuities are like a combination of the first two types of tax deferred annuities. The rate changes periodically based on the market indexes. It is wise to speak with a financial professional to determine which type of tax deferred annuity is best for you.