| When most
people are considering the advantages and disadvantages
of annuities compared to stocks, often times the
historical return stocks have generated are much
more appealing. However, there are important questions
you need to ask yourself: • Do you have
the patience for stock investing?
• Can you commit the time necessary to
be successful investing in stocks?
• Are you aware of the tax implications,
fees and expenses associated with stocks?
If you answered "NO" to any of these
questions, an annuity may be a good option for
you. An annuity will provide a periodic stream
of payments over a specified period of time.
Most people these days are choosing a tax-deferred
annuity because of its advantages. It allows
your money to compound faster, as compared to
traditional savings, because you can earn interest
on the dollars that otherwise would have been
paid to the IRS.
Tip. Talk with a trusted advisor
when considering your various options. There
are numerous products available that can be
tailored to meet your specific needs.
An additional benefit provided by annuities
is their history of being very safe. Some investors
enjoy taking huge risks for the potential of
a large return. Others prefer to know exactly
what their return will be each year. For the
latter, an annuity could be a great option.
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