Is your current CD earning 5%?

Does it earn a current interest rate?

Or is it tied to a lesser inetest rate?

Do you pay taxes on the interest earned?

Does it have a 10% annual withdrawal option?

Does it have a guaranteed interest rate for life?

Does it have an optional nursing home rider?

Consider the following example --assume the same interest rate for an annuity and a CD just for illustration purposes -currently annuity rates are higher than CD rates. Assume a $100,000 investment at 5% is invested in both an annuity and a CD. Also assume the owner is in a 35% tax bracket. In addition withdrawals are not made from either account until the 20th year.

The tax deffered annuity at year 20 is worth $265,329.64, versus $111,438.48 for the CD -- a difference of $153,891.19!