Whatever the reason, think again. Before we tell you why, let's review what these things are and how they work. An annuity is a contract between you and an insurance company. You pay in an amount of money in one lump sum, or periodically, depending on the type of annuity. At a point you specify, you start getting back your money, plus what it has earned, but minus expenses and fees.
Annuities come in all shapes and sizes, with a seemingly infinite variety of investment choices.
You get no tax deduction for the money you put in. Inside the annuity, your money grows tax-deferred, no matter what you invest in. However, your earnings will probably be taxed as ordinary income when you take them out, as opposed to being taxed at the lower capital gains rate. There are relatively high annual fees, as well. And most annuities come with a surrender charge if you want to get out of the annuity before you said you would.