What To Consider When Comparing A CD Annuity With A Deferred Fixed Annuity

A CD annuity, or Certificate of Deposit, operates in a significantly different way from a standard annuity. To decide between the two, you will first need to define your objectives as clearly as possible. One of the most important considerations when choosing any annuity is safety. As annuities are low interest investment vehicles, they are a very poor risk if they are not completely safe. All annuities sold by reputable providers have a high degree of safety, but certificates of deposit are even safer. They are backed by the Government, who will return your money in the event of bank failure.

Although annuities are backed by very strong financial institutions, they are not the Government and they do fail. If you choose this type of investment, it is strongly recommended that you check out your provider as thoroughly as possible. Independent rating companies can give you a very accurate assessment of the relative strength of a provider. It is exceedingly rare for a highly rated company of this type to go to the wall, but it can and does happen.

One of the major determining factors when you buy an annuity is the length of time you are intending to invest for. This is also important in deciding between a CD annuity and a regular one. The CD annuity is generally more suitable for a shorter time frame, and can effectively be used for a goal such as the down payment to buy a home. As real estate has traditionally proven to be an excellent overall investment, this is one of the better uses for investment funds of this type.

If you are intending to save money to boost your retirement fund, you will be better advised to look at a long term deferred fixed annuity. This is the instrument which gives you the greatest control over interest rates, and indeed even guarantees the rate of interest in the initial stages of the investment. Because they are defined for this purpose, fixed annuities are more flexible when the funds are needed for living on during the later years of an investment.

The tax incentives also mitigate strongly against the CD annuity. With a certificate of deposit, tax is payable on any gains at the time those gains accrue. With the fixed annuity, the tax is deferred until the money is actually taken out of the investment. This makes a huge difference, as the money which would have gone in taxes is still available to be reinvested in further years of the annuity. When you consider compound interest, this makes a very large difference over the full term of the investment. It represents another major reason why deferred fixed annuities are best for the long term, and why only short term investors can really consider the CD annuity.






 

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Attorney settlement leads to Father Joe Villages donation - The San Diego Union-Tribune

The San Diego Union-Tribune

Attorney settlement leads to Father Joe Villages donation
The San Diego Union-Tribune
Father Joe's Villages President and CEO Deacon Jim Vargas said he was not aware of the charity benefiting from a lawsuit settlement in the past, but he was delighted it had happened. EURœI applaud him for coming up with the idea,EUR he said. EURœWhile he could .

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Asta Funding (ASFI) Earning Somewhat Positive Media Coverage, Study Finds - The Lincolnian Online

Asta Funding (ASFI) Earning Somewhat Positive Media Coverage, Study Finds
The Lincolnian Online
Asta Funding logo Media headlines about Asta Funding (NASDAQ:ASFI) have trended somewhat positive recently, according to Accern Sentiment Analysis. The research firm identifies negative and positive media coverage by monitoring more than 20 million .
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Companies accused of misleading consumers about settlements will pay restitution, attorney general's office says - Baltimore Sun

Baltimore Sun

Companies accused of misleading consumers about settlements will pay restitution, attorney general's office says
Baltimore Sun
A company accused of using misleading tactics to get consumers to take cash in exchange for settlements that would have given them regular payments over time will pay more than $450,000 in restitution as part of an agreement announced Monday by the .

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City agrees to pay $115 million to dancer paralyzed in bus shelter collapse at O'Hare - Chicago Tribune

Chicago Tribune

City agrees to pay $115 million to dancer paralyzed in bus shelter collapse at O'Hare
Chicago Tribune
AIG Aviation, one of the city's insurance companies paid out the entire settlement, which was structured in a $15 million annuity to cover Darden's living expenses and $100 million in cash, Salvi said in a phone interview. A spokesman for the New-York .

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Emergent Capital (OTCMKTS:EMGC) and Torchmark (TMK) Head to Head Analysis - The Ledger Gazette

WeeklyHub

Emergent Capital (OTCMKTS:EMGC) and Torchmark (TMK) Head to Head Analysis
The Ledger Gazette
The Company, through its subsidiary companies, owns a portfolio of approximately 630 life insurance policies (life settlements). The Company purchases individual policies and portfolios of life insurance policies and manages those assets based on .
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Schulte Roth & Zabel Announces Promotions - Business Wire (press release)

Schulte Roth & Zabel Announces Promotions
Business Wire (press release)
Stephen M. Schauder, a partner in the Structured Finance & Derivatives Group, focuses his practice on asset-backed securitizations and warehouse credit facilities. He has represented underwriters, issuers, lenders and borrowers across a variety of .

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Reviewing Emergent Capital (OTCMKTS:EMGC) & Torchmark (TMK) - The Ledger Gazette

Reviewing Emergent Capital (OTCMKTS:EMGC) & Torchmark (TMK)
The Ledger Gazette
The Company, through its subsidiary companies, owns a portfolio of approximately 630 life insurance policies (life settlements). The Company purchases individual policies and portfolios of life insurance policies and manages those assets based on .

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HealthStream, Inc. (HSTM) At $24.13 Forms Bottom; Asta Funding (ASFI)'s Sentiment Is 0.83 - Promma News

Weekly Register

HealthStream, Inc. (HSTM) At $24.13 Forms Bottom; Asta Funding (ASFI)'s Sentiment Is 0.83
Promma News
Asta Funding, Inc., together with its subsidiaries, engages in the consumer receivable business in the United States. The company has market cap of $48.69 million. The firm operates through four divisions: Consumer Receivables, Personal Injury Claims .
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