When Should You Buy Annuities?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaLike all product considerations, non-qualified tax deferred annuities need to fit the individual saver or investor product suitability profile. Long term savers or investors that have high tax brackets should consider non-qualified tax deferred annuities. There are basically three crediting methods used in deferred annuities: interest rate crediting, indice crediting and separate sub account crediting. Interest rates are generated by the company’s predominately government bond portfolio. Most indexed annuities invest their interest rate returns in domestic and foreign index options. Some indexed annuities that credit zero in a given year, still charge policy expenses and which could result in a loss. Variable annuities use equity and bond instruments in their separate sub accounts selected by the variable annuity owner. These separate sub account allocations are subject to market risk, i.e. you can lose money.Answered on July 22, 2013+01+1 this answer
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