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Should I Purchase an Annuity?

2014 August 18

Dave is not totally against annuities, but they should be a low priority in your financial journey. Dave advises against making an annuity type investment while you are still in debt and/or if you have not maxed out other investment options (such as your employer retirement plan and possibly even a Roth IRA, which grows tax-free). If you are at a point where you have paid off debt and have utilized all other more lucrative options, an annuity does offer some tax-deferred growth and can be part of your financial plan. When you reach this point, Dave recommends variable annuities over other type since they allow for investing in stock mutual funds with the tax preferred protection of the annuity. You may want to contact one of Dave’s Investment ELPs to compare options to the plan you are considering.