What Do Annuities Do?

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    David RacichPRO
    Fountain Hills, Arizona
    Annuities were developed centuries ago to ultimately provide income. For example many savers purchase annuities because the fixed rate is generally higher than most banks and money market funds, but their end game goal should be income. Keep in mind that annuities are tax deferred, so you only pay taxes when you take distributions from an annuity. Deferring taxation on a long term annuity can provide an extra boast to your income stream later on when you annuitize.  

    Answered on June 5, 2013
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