What Are The Pros And Cons Of Annuities? 
The pros of owning an annuity are significant in a high tax bracket where their tax deferral is a major component to accumulating cash values . Many times the annuity rate is higher than most banks and money markets . And if annuitized annuities can generate life time income you cant outlive . The cons of owning an annuity can be significant . Liquidity is a concern . In general the longer the hold position the higher the surrender charge . Fixed interest rates that lock down long positions like the present 3.25 % for ten years could be too long if rates go up over the next decade . Todays five year rate is 2.95 % . Is the extra 35 basis points worth it for double the time period ? 