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Do I need an annuity?

Do I need an annuity? It is difficult to give a simple answer to this question. It is the choice everybody should make himself/herself. Below there are some categories of people who should explore the variants annuities offer:

  • People who pay high taxes often give preference to deferred annuities as they can invest any sum of money to the plan and their taxes will be deferred.
  • Couples in their 50s with income of $100,000 and savings about $250,000 but no pension prospects will probably prefer income annuities. It is very likely that one of them will live to a very old age.
  • Elder females, probably, need annuities more than males because they usually live longer and face the risk of remaining without savings. Moreover, single or widowed females tend to be poorer when they retire than men.
  • Pessimists, who are worried about the United States' financial system and think it may fail any time, will definitely like the guarantees that annuities provide.
  • Financial advisers often offer their wealthy clients to put their money in different annuity subaccounts (mutual funds) as an alternative to conventional (taxable) mutual fund accounts. This wealthy clients gain because taxes are deferred.

Thus, it is up to you to purchase an annuity or not. Investigate, think, analyze and make your own decision.

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