Chapter 32. Annuities in IRAs
“Too much of a good thing can be wonderful.” | ||
| --Mae West | ||
Mae West may have been right in some circumstances, but her comment certainly does not apply to putting an annuity into an IRA. In fact, it is far from wonderful—it is downright foolish. About the only one who profits from that scenario is the salesperson who sells you the annuity.
Perhaps the most positive aspect of an annuity is that the money grows tax deferred, so you do not pay income taxes during the years that the annuity is in the accumulation phase. This, in turn, permits more of your money to compound and ultimately earn you a greater return than many other investments.
But does it?
As always, remember my mantra, “It is not what you make that is important—it ...
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