Why Buy Annuities? 
Product suitability should be a required process of prudence for all potential financial product purchases , including tax deferred and immediate annuities . If your effective tax bracket is high , tax deferred annuities over time can have accumulating advantages , i.e. mid to long term , high tax bracket savers and investors should consider tax deferred annuities . Tax deferred annuities have three basic crediting methods : interest rate crediting , indice crediting and separate sub accounts using equity and bond investments . A risk tolerance assessment needs to be performed to determine your financial profile and product suitability . Keep in mind that tax deferred variable annuities can lose money . 