Consider Contributing to an Annuity

If you are in a retirement plan and your income exceeds the amount allowed for making regular or Roth IRA contributions, consider contributing to an annuity. An annuity will allow you to put back after tax dollars to grow on a tax deferred basis. If you are thinking of buying an annuity, consider the following:

1. Should you have a fixed rate or variable annuity?
2. What are the tax implications of owning an annuity?
3. Does it make sense to have IRA's or other retirement plans funded with tax-deferred annuities?
4. Are the fees, sales charges and/or surrender charges reasonable?

The main advantages of annuities are as follows:

1. You can shift the risk of outliving your assets to the insurance company.
2. They offer a death benefit guarantee whereby your heirs will receive at least as much as you invested if you die prematurely.