Young investors can benefit from deferred annuities that allow tax-deferred growth over many years. A fixed indexed annuity provides principal protection and market-linked growth. The longer the accumulation period, the more the annuity can grow.
Key Points
- Deferred annuity: allows tax-deferred growth over many years
- Fixed indexed annuity: principal protection and market-linked growth
- Longer accumulation period: more growth potential
- No contribution limits: unlike 401(k) or IRA
- An independent agent can compare deferred annuity options for young investors