COMPARISON OF ANNUITIES WITH OTHER INVESTMENTS
Features	Annuity	CD	Taxable Bond	Municipal Bond	Equity - Stock Mutual Fund	Money Market Fund
1.  Free from principal/market risk and price fluctuations?	Y	Y	N	N	N	N
2.  Are (interest) earnings free from current taxation?	Y	N	N	Y4	N5	N5
3.  Are interest earnings reinvested automatically with no current income taxation?	Y	N	N	N	N	N
4.  Am I able to make small additional investments?	Y1	N	N	N	Y	Y
5.  Tax liability on Social Security income eliminated on deferred accumulation?	Y	N	N	N	N3	N3
6.  Liquid?	Y	Y	Y	Y	Y	Y
7.  Flexible?	Y	Y	Y	Y	Y	Y
8.  Penalty Free Withdrawal?	Y	N	Y3	Y3	Y3	Y3
9.  Funds not reduced by commissions?	Y	Y	N	N	N	Y
10.  Does this investment automatically avoid the expense and delay of probate?	Y	N	N	N	N	N
11.  Guaranteed lifetime income with tax advantages?	Y	N	N	N	N	N
Totals	11	4	3	4	4	5
1 When your Tax-Deferred Annuity is a Flexible Premium Deferred Annuity versus a Single Premium Deferred Annuity, small additional deposits are allowed. 2 Some tax deferral on mutual funds can take place to the extent that capital gains take place.  Dividend income and capital gain distributions are taxable, and cause tax liability to Social Security income in certain circumstances. 3 Sales commissions and/or market risk losses may occur. 4 However interest from qualified municipal bonds is usually safe in a taxable account, thus diluting, so a degree of taxation does occur and the effect of compounding is reduced. 5 There will, at times, be capital gains taxation. Federal capital gains rates are as low as 5% and as high as 28% currently depending on your income and type of capital investments.  Most now cap at 15%.