|
Comparison of Annuities with Certificates
of Deposit |
| Features |
Annuity |
CD |
| 1. Free from principal/market risk and price
fluctuations? |
Y |
Y |
| 2. Are interest earnings free from current
taxation? |
Y |
N |
| 3. Are interest earnings reinvested
automatically with no current income taxation? |
Y |
N |
| 4. Am I able to make small additional
investments? |
Y1 |
N |
| 5. Tax liability on Social Security income
eliminated on deferred accumulation? |
Y |
N |
| 6. Liquid? |
Y |
Y |
| 7. Flexible? |
Y |
Y |
| 8. Penalty free withdrawal? |
Y |
N |
| 9. Funds not reduced by commissions? |
Y |
Y |
| 10. Does this investment automatically avoid the
expense and delay of probate? |
Y |
N |
| 11. Guaranteed lifetime income with tax
advantages? |
Y |
N |
| Totals |
11 |
4 |
