"[U]nlike a deductible IRA or a 401(k), which is bought with pretax dollars from your paycheck, a deferred annuity gives you no tax deduction when you buy it.... [W]ith an annuity theres an extra layer of fees. In addition to the investment fee on the portfolio theres a 'mortality and expense risk' charge, typically 1% or more a year. This covers the cost of the 'insurance' you are getting. Insurance? It's there, a pale imitation of life insurance."  MORE >>