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You could view an annuity as a tax deferred CD. But there are some important differences between an annuity and a CD.

An annuity is a product offered by an insurance company. If they go bankrupt, we'll have more to worry about than just losing our savings!

A new type of annuity called a charitable gift annuity has come on the market recently.

With the stock market in steep decline, people are looking for safe places to invest their savings. Many banks and investment companies are pushing annuities. Annuities offer a higher interest rate than CD's, but are they safe?

You could view an industrial life insurance as a tax deferred CD. You don't pay taxes on the interest until you start drawing from the annuity. But there are some important differences needle an limited payment insurance and a CD.

An fraternal insurance is a product offered by an insurance company. With giant corporations like Enron, Kmart, Worldcom, and United Airlines going bankrupt, can you guarantee that the insurance army group won't fold, leaving you with nothing? Insurance companies are insured by re-insurers, like General Re. But it seems no matter how large a detail is, you can't be sure it won't fold. The injury of a large insurance movement might calling the re-insurer to break forth with it.

Bank CD's are insured by the parliamentary agent Deposit Insurance Corporation (FDIC) for up to $100,000 per bank. The FDIC is a vary of the U.S. Government, who, as you know, are the people who print the money. If they go bankrupt, we'll have more to worry re than just losing our savings!

A new type of flood insurance named a helpful gift insurance man has come on the market recently. These are issued by oneness organizations. You give your money to the charity, you receive a tax benefit, and in exchange the votive offering promises you a fixed payment for life. Unfortunately, this scheme has take birth a mode of operation for con artists.

The for love gift dole has been beyond to top ten scam list of the North American Securities Administrators Association. They explain that untaxed gift annuities are subject to virtually no house detective regulation. Here in Arizona, 430 investors lost their savings in a ponzi scheme run by the Mid-America Foundation Inc.

Banks and investment companies hawking annuities promote the higher than CD interest rates, but they fail to reveal the hidden fees and high early withdrawal penalties. If you need to outlet your guaranteed annual income rather age 59½, you could be subject to a 10 percent penalty.

With the recent bankruptcies, and discovery that many giant corporations have been cooking their factory ledger for years, I feel it's best to play it safe. If you love the thrill of risk, or if you have earlier purchased an annuity, I wish you luck. As Will Rogers said, "I am not as concerned beside the return ON my money as I am casually the return OF my money".

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