Monday, September 14, 2009

Young Annuity Buyers

Annuities are less attractive to younger investors because there is a 10 percent penalty tax if you withdraw money from your annuity before age 59 for reasons other than death or disability.

However, if you have already retired and need annuity income right away, opt for immediate annuities, which skip the accumulation phase and begin to issue payments as soon as you invest in the contract.

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