When Are Annuities A Good Investment? 
Assuming youre addressing non-qualified annuities , product suitability dictates whether you should purchase a non-qualified annuity or not . A variable deferred annuity could be characterized as an investment because it is a security that uses separate sub accounts funded by market equities and bonds . All other deferred annuities should be characterized as savings products . You first need to establish a personal financial profile that includes a risk tolerance assessment , defined financial goals , an estimate of your life expectancy and a determination of your effective tax bracket . This will assist you in your product suitability self-examination . The higher the effective tax bracket rate , the more you should explore annuities . The power of tax deferral can be significant over many years . 