Tax
Deferred Annuity
45% More Growth:
Annuities are a smart place to stash your cash and watch it grow because income tax on interest earnings is tax-deferred. This means 45% more growth in the first year alone.
You Won't Get a 1099:
One of the things you'll enjoy most about tax-deferred annuities is that you won't get a 1099 (Uncle Sam's demand note) on interest earnings at the end of the year.
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Seniors Benefit 4 Ways From Split-Annuities
Annuities vs CD's and Bank Deposits
With the loss of many income tax deductions, coupled with a low but ever present inflation rate, and a relatively low interest rate enviornment; interest earnings on bank accounts may net less than 0% because you get a 1099 at the end of the year and you will have to pay taxes on the interest you earned but have not received. The tax-deferred interest in an annuity coupled with the usually higher interest rate of the annuity makes it easy to see why everyone should have an annuity or annuities. Tax deferment is like putting dollars that your would have payed in taxes to work earning more tax deferred interest and compounding. To put it another way, it's like borrowing tax dollars from Uncle Sam and putting those dollars to work compounding interest.
While more attrative yields are available from single premiums (deposits) some annuities that accept on-going flexible premiums (deposits) are available. Whether you're looking for immediate income, future income, or a way to protect your assets from tax erosion, inflation, probate, and administrative costs, you can find an annuity tailored to your needs.