SUMMARY

1. The best annuity is the one that matches the needs of the consumer.
2. Tax-deferred annuities provide accumulation first and then potential income later. On the other hand, immediate annuities provide income now.
3. Fixed annuities offer no market risk and a choice of guaranteed interest rates for one to 10 years or a percentage of potential index gains. On the other hand, variable annuities can offer market risk and a wide choice of investment options.