Many of us can expect a retirement that will span two or more decades. That makes planning for retirement an important challenge. One way to plan for your retirement is to invest in a tax-deferred annuity. An annuity is a unique investment contract issued by an insurance company that allows your money to grow tax-deferred until you withdraw your funds. Annuities are ideal for retirement saving because they're designed to work as a long-term investment.
Annuities are one of the most popular ways to exploit the power of tax deferral.
This accelerates growth and helps you maximize your earning power. That means you don't have to worry about fluctuation in the value of your account. While the value of such portfolios can fluctuate with market conditions, they allow you to take advantage of the potential for higher returns over the long term. Both fixed and variable annuities offer a variety of attractive benefits. At retirement, you can choose from a number of options for creating reliable income, such as a lump sum, regular payments or a stream of income that you can't outlive.