Читать книгу Mutual Funds For Dummies - Eric Tyson - Страница 24

Annuities are investment products with some tax and insurance twists. They behave like savings accounts, except that they should give you slightly higher yields, and insurance companies back them. As with other types of retirement accounts, the money you put into an annuity compounds without taxation until withdrawal. However, unlike most other types of retirement accounts — 401(k)s, SEP-IRAs — an annuity gives you no upfront tax deductions for your contributions.

Annuities also charge relatively high fees. That’s why it makes sense to consider contributing to an annuity after you fully fund the tax-deductible retirement accounts that are available to you. The best annuities available today are distributed by no-load (commission-free; see Chapter 7 for more on load and no-load funds) fund companies. For more information about the best annuities and situations for which annuities may be appropriate, be sure to read Chapter 15.