In the past, annuities were considered investments only for people nearing retirement. But today, annuities can be smart investments for people of all ages. Remember, an annuity can be invested in a variety of different investment instruments, offering everything from modest to fast capital growth alternatives. The following are good uses for annuities:
1. You need a higher interest-rate alternative to Certificates of Deposit(CDs) and money market funds
2. You want to make your long-term savings grow faster without current taxation.
3. You need to save more for retirement, but you have "maxed out" your IRA and 401(k) or 403(b).
4. You need to roll over (reinvest) existing tax-deferred savings, like pension plans.
5. You need to guarantee yourself an income for the rest of your life.
6. You need to guarantee yourself an income for the rest of your life and your spouse’s life.
7. For purchasers of a special type of annuity called an Equity Index Annuity, You want to protect your "principal" with a guaranteed rate of return while investing in the equity markets.
