The goal of market based investments is typically to try to acquire an investment return which out-paces the rate of inflation and the eventual taxes you will owe. An index annuity will allow you to participate in returns based on an unmanaged measure of market conditions called an index. The best option depends on your risk tolerance and time horizon. At EFS, we are trained and experienced in analyzing the best investment for you and your family. One of the most attractive features of annuities is their tax benefit.
Deferred annuities are free from current income taxation for federal and state.
You pay tax on the gain when you take it out. The interest or gain in the contract is also free from the calculation formula for taxing your social security benefits. As I mentioned previously, some of the most attractive features of certain annuities are their principal guarantees. The most common is the death benefit guarantee. Some of the newer policies even offer an increasing death benefit based on a guaranteed interest rate.