Chapter 14: Annuities and Individual Retirement Accounts Web Exercise

Many Americans purchase annuities to provide income during retirement. A website providing valuable information about annuities and Individual Retirement Accounts (IRAs) can be found at:

www.annuity.com

You can use this site to learn more about different types of annuities, to see examples demonstrating the importance of tax deferral, and to get a quote on an annuity.

After exploring this website, follow the instructions to answer these questions:

Questions

1. To get started, read Annuities Explained and A Comprehensive Guide to Annuities and Annuity Investing under Annuities 101. (After clicking on Annuities 101, see the numbered links at the bottom of the page and scroll through to find the stories)
2. What type of annuity is best for you? Click on the What is the Best Annuity? link under Annuities 101.
3. For many individuals who wish to save for retirement, the choice is between retirement annuities and certificates of deposit (CDs). What are the three major advantages of annuities over CDs? (See Annuities vs. Bank CDs: How do they Compare? under Annuities 101)
4. Several interesting articles are posted under the Articles link at the top of the homepage. Use the Articles link to find the following readings.
   1. What issues are important for an individual who is planning his/her estate? (Click on the 10 Estate Planning Success Tips under Estate Planning")