Wednesday, September 21, 2011

CD Annuity or Not?


One of the ways to secure your financial investment is through CD-type annuity. It is conveyed to a flat-interest income wherein the benefit rate term warranty and expire together; a contract between the investor and the insurance company. Here are a few tips to consider before trusting your investment to other agencies.

Compare offers from different insurance groups and find out the benefits they bring. Since it is tax-deferred, you pay zero percent tax on your annual income until you withdraw it. Also, cd annuities offer a point advantage of about 1% greater than deposit certificates. For some people, these maybe a good deal, especially for those ranging to 60 years old when the annuity finally matures.

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