Long considered a CD alternative, annuities have become very popular today. Paying higher rates than CD's and deferring taxes, many people on a fixed income find annuities are a better option than tying up money in CD's or a money market account. Like a CD you can place lump sums of money in annuities. Typically, a 10% withdrawal is allowed to be withdrawn each year without a penalty.

Fixed annuities offer important benefits

• Safety of principal. With a fixed annuity, your contract includes guarantees that help protect against loss.
• Interest rate guarantees. For fixed and fixed index annuities, there are contractual guarantees that interest will never fall below a minimum guaranteed rate.
• Guaranteed retirement income. When the deferral period specified in your contract is fulfilled, you have the option to start taking annuity payments, including options guaranteed to continue for your lifetime, freeing you from the risk of outliving your income.
• Tax-deferred accumulation. You pay no ordinary income taxes on any contract gains until you withdraw your funds. Over time, tax-deferred accumulation can have a positive impact on your retirement reserves.
• Death benefit protection. In the event you die before you begin taking annuity payments, the proceeds of your annuity will go to the beneficiary/beneficiaries you have named. You may also choose annuity payments with a guaranteed period for a death benefit to be paid.