If you are in your late forties, or fifties, or maybe a little more older, and planning to save for your post-sixties, you may be going through a lot of advice and information on various long term saving plans. Mutual funds, CDs, and annuities – your friends may already have invested somewhere and you are not sure if those options are good for you. Mailers in your inbox may have added to your dilemma. Let’s try to help you a little.

Is an annuity good or bad? If this is what you are wondering, then let’s answer it for you.

Annuities are a contract – a promise made by an insurance company to pay you specified amounts of money at regular intervals. You can choose to get paid after your retirement or as soon as you purchase an annuity, to get paid for a specified time period or for life, or to get paid in big amounts or smaller monthly incomes. You simply need to identify your requirements and then match the benefits that annuities can offer you, and finally, select the annuity that offers you closest to what you need. Annuities can be of several types, fixed and variables, linked to the stock exchange, immediate and deferred, or qualified or unqualified. Annuities will be good for you if you can select them well.

Why should you consider an annuity?

If you need to save significantly to meet long-term goals, if you want to invest in equities but safeguard yourself from huge losses, if you want to find a method of investment that helps reduce your taxes and grow your savings, or gives you the convenience to pay your tax at a time suitable to you, or if you want to ensure a steady flow of income over a specified period, you can consider an annuity, rather a fixed annuity.

Why is there so much buzz about tax deferral in the annuity business?

Tax deferral means that your income or savings or investments will not be reported for tax unless you start withdrawing the money from your annuity. You can even postpone the payment of taxes till death, at which time your named beneficiaries would be responsible for paying taxes on the deferred gains.

For more information on annuities and to understand whether an annuity is good for you, Click here or call AnnuityLibrary.comtoll-free at 1-800-998-4056. AnnuityLibrary.comis an independent and reliable source of information and is referenced by renowned financial organizations and publications. Our specialists can advice you on all aspects of your annuity decisions.