Maybe never. With any savings or investment products, you need to create a financial suitability profile that establishes your risk tolerance and confirms your economic goals. If those goals include tax advantaged insurance products, then you should consider annuities. If tax deferral is a key component for you, then annuities should be a consideration.
Annuities have crediting options like interest rates, indice returns and equity/bond market performance which you should correlate with your risk tolerance profile. But keep in mind that ultimate use of annuities in your portfolio should be for income. Without this critical goal in mind, annuities may not be for you.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
You should purchase an annuity when you need a lifetime stream of income. That is what only an annuity can provide. There are other times to purchase an annuity. You need to save towards retirement or some other long term goal and want the earnings of the savings to be tax deferred. An annuity is your solution. You might buy an annuity to realize a greater profit as compared with other long term savings vehicles.
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Annuities have crediting options like interest rates, indice returns and equity/bond market performance which you should correlate with your risk tolerance profile. But keep in mind that ultimate use of annuities in your portfolio should be for income. Without this critical goal in mind, annuities may not be for you.