Annuities - Wonderful yet Misunderstood

In the financial world, the word “annuity” is probably one of the most misunderstood investment terms. Myth and confusion surround the word like a thick cloud. However, once people realize the tremendous benefits certain types of annuities can provide, they often exclaim, “that just seems too good to be true!”

While there are many types of annuities, I believe that the most overlooked annuity is the guaranteed fixed interest annuity often referred to as a “CD-type annuity.” These annuities not only provide safety of principal, they also can provide a guaranteed interest rate that is very attractive. For people who want to keep their money safe and earn an excellent rate of interest, CD-type annuities can be a wonderful way to invest.

In addition to simply earning a good interest rate, annuities make several powerful strategies possible as well. For example, people who have non-IRA investments and who would like to lower their taxes can use a powerful income strategy known as the “combo strategy” to provide good monthly income while slashing their income tax bills. In fact, by using a typical combo strategy, most investors can reduce the income tax on their interest income up to 80%.

In the next few pages, I will dispel the myths surrounding annuities and show you how they can help you increase your interest income, reduce your income taxes, and enhance your financial security.