Unfortunately, annuities sometimes get a bad rap from the media. Because fixed annuities are insurance products and are not regulated by banks or the SEC, many financial advisors decry them in newspaper or magazine financial advice columns. The truth is that fixed annuities rate favorably in the retirement savings market. In fact, many annuity products offer considerable benefits over volatile market based investments and safer savings methods like savings accounts and bank CDs.

Why do fixed annuities rate so favorably? For one, all interest earnings remaining within an annuity are tax deferred until withdrawal. That means all the interest that your annuity garners compounds tax deferred, often for five to ten years or longer. The power of triple compounding in annuities makes annuities an attractive vehicle for your retirement savings.

Unlike investing directly in the stock market, when you buy a fixed annuity your original principal and any credited interest earnings are never at risk – another way that fixed annuities rate favorably. When the stock market is in a downturn, your money is protected by the issuing insurance company. With a fixed annuity, your money is never invested directly in the stock market. Insurance companies instead add your deposit to their general investment portfolio, typically made up of high quality bonds, and directly guarantee the provisions of your policy.

Savings accounts and bank CDs are known for their safety. Backed by the FDIC, deposits of up to $250,000 are guaranteed indirectly by the United States government. However, these savings methods generally do not offer big yields. Essentially, you trade high yield for safety. Fixed annuities, because they are controlled by profit-driven insurance companies, can and do offer better interest rates to customers, another way annuities rate favorably.

Want to learn all the different ways that annuities beat out other savings methods? Call the AnnuityLibrary.com Annuity Specialists today at 1-800-998-4056 to learn all about how annuities can help you save for retirement.