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Using Annuities to Invest for Future Retirement

Radio Transcript, 60 seconds, for use during week of Nov. 12.

This is an Invest Wisely minute brought to you by Iowa State University Extension.

One option for retirement income is an annuity.  Typically annuities offer tax-deferred growth of earnings, a steady income during retirement, and in most cases a death benefit that will pay your beneficiary a guaranteed minimum amount.

But financial professionals advise you to study your options carefully and ask for clarification from your insurance agent regarding annuities.  There can be tax consequences you need to understand. And sometimes fees and other expenses can be more than if you just invest directly in similar mutual funds. 

Consider your options carefully.

Invest Wisely comes from Iowa State University Extension through a grant from the Investor Protection Trust providing investor education on the web at investorprotection.org.

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Updated November 12, 2007