In today’s economy, saving is a much harder task to achieve. Whether it’s adding money to an emergency account or saving for retirement, the fact is you’re money probably isn’t growing as fast as you would like.

And the disturbing and dramatic drops in the stock market, interest rates and home values, don’t make this reality any easier to face. In an effort to minimize losses, many people have wisely moved some of their money into investments that aren’t subject to stock market fluctuations. These investments include certificates of deposit (CDs), savings accounts and money markets.

Unfortunately the interest rates on these investments (that many people call “safe” money) are extremely low. Some are currently earning less than 1% interest. And that 1% is fully taxable.

That’s why I want to let you in on an amazing financial instrument called an annuity. Annuities allow you to earn more and keep more, without taking needless risks. Some of them are currently earning 3 to 4 percent interest for as long as 5 years.

And unlike, CDs, savings accounts and money markets, annuities earn interest on a tax-deferred basis, which means you don’t have to pay taxes on the interest you earn until you withdraw the money. Why does this matter? Tax-deferral helps your money grow a lot faster.

Conveniently, annuities are issued by the same companies that issue term life insurance. These are some of the strongest, most stable financial institutions in the world.

For more information about annuities and how they can help you keep your money safe, contact AccuQuote. We can answer your questions and give you a free annuity quote. Alternatively, if you’re interested in learning more about term life insurance or to compare life insurance rates, get a free term life insurance quote.

• Think long term. Find out how long your interest rate is guaranteed. For a good long-term look, contrast the initial rate offered with the rates of existing contracts.

• Beware of hidden fees and expenses. Investigate all fees and expenses attached to the annuity. Pay close attention to the surrender charge. If you plan to retire in seven years, don’t select an annuity with a 10-year surrender period.

• Don’t underestimate safety. Check insurance company ratings online at Standard & Poor’s and/or A.M. Best.

• It pays to shop. Compare features from different insurers and ask for quotes. Annuity Sites offer valuable information to help you research your options and make the choices that best fit your needs.

A life insurance policy is a key element in any sound financial plan. If you should die prematurely before having built your retirement nest egg, there is no substitute to replace the income you would have earned during the balance of your career for the benefit of your spouse and children.

Annuities are a bit different than life insurance. Annuities are products offered by life insurance companies that generally fall into two categories: immediate and deferred.  Immediate annuities generate an immediate income. In exchange for a lump sum payment from you to the insurance company, they begin making payments to you, typically on a monthly basis.  These products are usually used at retirement, in order to guarantee a lifetime income.

Deferred annuities are more similar to a savings account, but unlike a savings account, they allow your investment to accumulate interest on a tax-deferred basis.  The key advantage to a deferred annuity, versus other savings vehicles, is that the taxes on your earnings are delayed until you make a withdrawal.

There are three types of deferred annuities.  Each offers a different level of risk.  Conservative investors might select a fixed deferred annuity because they offer a fixed interest rate, currently about five to six percent.

Those people who want a higher rate of return (and can shoulder the added risk) might select a variable annuity.  Returns from a variable-deferred annuity fluctuate based on the stock market’s performance.  The rate is not guaranteed and it is possible to lose principal.

Equity-indexed annuity returns are linked to the performance of a stock index, such as the Standard & Poor’s 500.  Interestingly, many of these products allow you to participate in the gains of the stock market, but without any risk of loss each year.  To further decrease risk, the insurance company guarantees a minimum interest rate, typically around one to three percent.  This category of annuities was introduced about six to seven years ago, and has become the fastest growing type of deferred annuity due to its combination of safety and upside growth potential.  Overall, when used properly, annuities can be a valuable retirement investment tool.