A tax-deferred investment can help your money grow faster than a taxable investment earning a similar return. That's because you don't pay taxes on your earnings until you withdraw the money. So, all of your money keeps working for you without being reduced by annual taxation. Later, when you need your money and may be in a lower tax bracket, only the earnings on your investments are taxed. 2 Click here for a chart that demonstrates the power of tax deferral.
Most people start taking income from their annuity during their retirement years.
Click here for a list of income options. Variable annuity fees are deducted directly from your contract. As a result, they will influence your return. You ll need to read the product s prospectus carefully to find out about any other fees that you ll incur. They cover the costs of keeping records of an annuity and cover operating expenses, such as providing customer statements and other communications.