The annuity with the back-end charge might have a higher annual expense charge you overlooked. It does not matter whether a sales charge is assessed upfront or upon redemption if the percentages are the same. A lower percentage charge would mean more money at the end for you. Of course, it would be better not to pay a sales charge at all. And it might be better still not to buy an annuity at all.
Annuities offer advantages of asset protection and tax deferral.
Unfortunately, these are offset by higher fees and, ultimately, higher taxes. If you hold your mutual funds for at least a year, your gains will be taxed at 10 percent or 20 percent when you sell. Annuities turn capital gains into ordinary income taxed at up to 39.6 percent. Q. I found a savings bond in a parking lot. Include a note explaining that you found a lost bond.