Is an Annuity better than a CD? Why should I trust an Annuity over a CD in this market?
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annuity versus CD's
Annuities and CD's both offer a safe haven for your money. CD's are insured by the FDIC. Annuities are backed by the strength of the issuer and your states insurance guarantees.
CD's are taxable income each year while annuities are only taxed when you choose.
Some annuities allow additional deposits.
Annuities avoid probate as they are payable on death.
Some annuities offer 100% penalty free withdrawal if nursing home coverage is needed or if a terminal illness is diagnosed.
Some forms of annuities offer guaranteed lifetime income.
Those are some of the differences between CD's and annuities. The choice is yours and should be made based on what is best for you.