An immutable law of economics states simply that wealth is created by only two things:

People at work or Money at work

Although many attempts to circumvent this principle have been made, few have succeeded legally!

People, especially those who are middle-aged, are particularly anxious about finding a place they can put their money that has low risk, provides a decent rate of return, has tax advantages, and will be there when they retire.

As a well-known sport's commentator likes to say, let us look at the record. Not all that long ago, investors could easily secure at least 5% on their capital perhaps even 10 or 12% if they were willing to accept some greater risk.

As of this writing, ten-year treasury notes are paying about 4.70%. Ten-year AAA rated municipal bonds, Munis, are yielding about 3.81%. High-grade (AAA) ten-year corporate bonds are offering about 5.44%. (It is important to look at all the variables in each of these instruments.)

CDs, once the darlings of the over-fifty generation, are now paying about 2-3%, depending on the term. Even to get that high rate, you have to tie your money up for a long time. Once you could get as high as 12% on CDs, but that was then, and this is now.

So the concerns are these:

1. Safety of principal

2. Reasonable rate of return

3. Liquidity

4. Flexible term (depending on when you want the money)

5. Deferral of tax

6. Availability from a reliable source.

Is there anything that meets all these criteria? Absolutely. It is called a fixed annuity. It is the safest and most efficient method by which one can liquidate a specified sum of money over a selected period of time. Only the annuity contractually guarantees both the return of principal and interest to the contract holder. Furthermore, only the annuity can guarantee the contract holder that he will not out-live the sum of money set aside for a given purpose, such as retirement. The annuity is unique in this respect.

Credited interest is not currently taxable. Many annuities, equity-index versions in particular, also offer additional advantages such as two-tiered rates. Tiered rates provide the contract holder with both a guaranteed minimum rate while also having an opportunity to participate in the stock market. The variations are almost limitless, but the bottom line is that you probably cannot get a better rate of return today.

In addition to secured principal and an attractive interest rate, the tax deferral advantage is certainly very important. Because of tax deferral, your capital will grow larger and faster through compounding.

Annuities have always been prime saving vehicles, but in today's market they are better than they ever have been! With an annuity your money will always make money, without risk, with tax deferral, while being issued from the strongest financial institutions in the world: insurance companies.

(* Interest data from the WSJ 3/22/2006)

Liquidated earnings are subject to ordinary income tax, may be subject to surrender charges and, if taken prior to age 59 1⁄2, may be subject to a 10% federal income tax penalty.

Guarantees and payment of lifetime income are contingent on the claims paying ability of the issuing insurance company.

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