You have graduated from college and commenced a successful career. In fact, the major problem you face is that your income has reached a point at which your combined state and federal marginal tax rate is nearly 50 percent. You are considering a flexible-premium deferred annuity as an investment, primarily because of the tax deferral on the accumulation. A friend has suggested you can achieve the same results by investing in tax-exempt bonds. Describe the factors you would consider in choosing between these alternatives.