 |
CD versus Single Premium Deferred Annuity Comparison Chart
|
|
Single Premium Deferred Annuity
|
Certificate of Deposit
|
Is your premium free
from Market risk and price fluctuation?
|
YES
|
YES
|
Is your interest compounded and reinvested automatically with no current taxes?
|
YES
|
NO
|
|
Can you make small additional contributions?
|
YES
|
NO
|
Can you ever make free cash withdrawals?
|
YES
|
NO
|
Do you have to pay commissions?
|
NO
|
NO
|
| Is there a provision to a guaranteed lifetime income with additional tax advantages? |
YES
|
NO
|
| Is there automatic by-pass of probate expenses and delays? |
YES
|
NO
|
|
CD
|
ANNUITY |
|
$100,000 AT 6.00%
35% TAX BRACKET
$6,000 INTEREST/YR
Tax Collector gets $2,160
Investor left with $3,900
|
$100,000 AT 6.00%
35% TAX BRACKET
$6,000 INTEREST/YR
Tax Collector gets $0
Investor left with $6,000
|
|
CD vs Single Premium Deferred Annuity
