It seems like everyone all over is recommending an annuity over CDs. Is it really because they are better....I THINK NOT!!!



Now, here is the truth and it shouldnt shock you: the number one reason most advisors recommend annuities over CDs is because they pay better-tremendously better. I am sorry if you disagree but there is absolutely no doubt in my mind that is the reason your banker or whoever would recommend a fixed annuity over a CD...for the most part. CDs barely pay anything. Fixed annuities however, can pay as tremendously more.

Point 1: CDs are NOT tax deferred. Each time you receive interest, you are forced to pay taxes on the interest where with an annuity, the tax is deferred until you decide to cash your annuity in. Score one for the annuity. But wait....some would argue that paying taxes along the way is much cheaper than accumulating a huge tax time bomb years later. That totally depends on your taxable situation but it is worth looking into depending on your individual basis.

Point 2: Annuities are not liquid. If you ever need your money from your annuity, you are forced to pay a pretty heavy penalty relative to a CD (with the exception of principal back guarantee annuities). Your only allowed to access 10% a year in any given year. CDs on the other hand are much more liquid than annuities. They give you much more flexibility when it comes to accessing your money. Score one for the CD.

Point 3: CDs are FDIC insured where annuities arent. But, annuities are backed by the big insurance company your with. I would have to say that in terms of safety its almost the toss of a coin if your annuity is held with a solid insurance company.

Point 4: CDs are pretty straight forward. Annuities are very trick. Definitely a point for the CDs here. CDs are so not complicated where as annuities can turn into a nightmare if youget involved with something that is more complicated than you think. Score a big one for the CD here. Easy to understand and thats never a bad thing.

Point 5: Annuities avoid probate. CDs do not. Score one for the annuity but remember that you can always do something called a TOD with your bank account that holds the CD. This stands for Transfer on Death which would avoid probate as well.

FInal Analysis: As always, there is not a clear cut choice. I wanted to uncover these issues for you so that you could see and understand that its not black and white. There are many things to consider if you are looking into a CD or an annuity. Most importantly, you have to consider whats right for you and your situation.

Ditch the CDs and go for annuities. After all, annuities are tax deferred, often offer higher rates of refund and are better....or are they? That is a interrogative worth pondering.

It seems like everyone all over is recommending an rente over CDs. Is it really because they are better....I THINK NOT!!!

Now, here is the truth and it shouldnt shock you: the amount one ground most advisors recommend annuities over CDs is because they pay better-tremendously better. I am sorry if you disagree but there is absolutely no doubt in my mind that is the reason your banker or whoever would advocate a fixed rente over a CD...for the most part. CDs scarcely pay anything. Fixed annuities however, can pay as enormously more.

Point 1: CDs are NOT tax deferred. Each time you receive interest, you are strained to pay taxes on the interest where with an annuity, the tax is deferred until you decide to cash your annuity in. Score one for the annuity. But wait....some would argue that gainful taxes along the way is much cheaper than accumulating a huge tax time bomb years later. That all depends on your taxable situation but it is worth looking into depending on your someone basis.

Point 2: Annuities are not liquid. If you ever need your money from your annuity, you are constrained to pay a jolly heavy penalty relative to a CD (with the exception of principal back guarantee annuities). Your only allowed to get at 10% a year in any given year. CDs on the other hand are much more flowing than annuities. They give you much more flexibility when it comes to accessing your money. Score one for the CD.

Point 3: CDs are FDIC insured where annuities arent. But, annuities are backed by the big insurance companionship your with. I would have to say that in terms of prophylactic its almost the toss of a coin if your annuity is held with a solid insurance company.

Point 4: CDs are pretty straight person forward. Annuities are very trick. Definitely a point for the CDs here. CDs are so not complicated where as annuities can turn into a nightmare if youget involved with something that is more complicated than you think. Score a big one for the CD here. Easy to empathize and thats never a bad thing.

Point 5: Annuities avoid probate. CDs do not. Score one for the annuity but remember that you can always do something called a TOD with your bank account that holds the CD. This stand for Transfer on Death which would avoid probate as well.

FInal Analysis: As always, there is not a clear cut choice. I cherished to uncover these issues for you so that you could see and understand that its not black and white. There are many things to regard if you are looking into a CD or an annuity. Most importantly, you have to consider whats right for you and your situation.

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