All annuity types have their pros and cons. Flexibility, security and risk aversion are some of the general advantages of annuities. There are also more complex tax benefits that can be obtained with investing in an annuity as well. The right choice depends on investors and their current needs and portfolios.

General benefits to help guide your decision:

Fixed deferred annuities make sense if you:

Desire the security and safety of a guaranteed interest rate
Want tax deferral advantages
Have considerable assets to set aside for at least five years
Are looking to potentially convert into a future income
Are saving for retirement

Variable annuities make sense if you:

Want gains of potential market growth
Have significant assets to set aside for 10 years or more
Want tax deferral advantages
Are looking to potentially convert into a future income
Are saving for retirement

Income annuities make sense if you:

Are in retirement or are entering retirement
Desire a guaranteed retirement income
Have a rollover or lump sum to convert into an income stream
Have concerns about outliving your income

To decide what option best fits your unique requirements it is best to consult a licensed agent to analyze your current circumstances, portfolio and financial needs.