By purchasing a tax-deferred annuity, after 40 years, you could accumulate $3,533,972 (resulting in $2,808,418 after taxes) vs. $1,978,895 in a taxable account. Withdrawal charges may also apply if you surrender or take withdrawals from your annuity in the early years. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable Account vs. Annuity' xAxisName='Year' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='E6E3CF' palette='2' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='' /><category label='' /><category label='4' /><category label='' /><category label='' /><category label='7' /><category label='' /><category label='' /><category label='10' /><category label='' /><category label='' /><category label='13' /><category label='' /><category label='' /><category label='16' /><category label='' 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22%</th><th scope="col">Taxable Ending Balance</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 7.00%</th><th scope="col">Annuity Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$0</td><td>$236,000</td><td>$16,520</td><td>$3,634</td><td>$248,886</td><td>$236,000</td><td>$16,520</td><td>$252,520</td></tr><tr><td role="rowheader" scope="row">2</td><td>0</td><td>248,886</td><td>17,422</td><td>3,833</td><td>262,475</td><td>252,520</td><td>17,676</td><td>270,196</td></tr><tr><td role="rowheader" scope="row">3</td><td>0</td><td>262,475</td><td>18,373</td><td>4,042</td><td>276,806</td><td>270,196</td><td>18,914</td><td>289,110</td></tr><tr><td role="rowheader" scope="row">4</td><td>0</td><td>276,806</td><td>19,376</td><td>4,263</td><td>291,919</td><td>289,110</td><td>20,238</td><td>309,348</td></tr><tr><td role="rowheader" scope="row">5</td><td>0</td><td>291,919</td><td>20,434</td><td>4,496</td><td>307,858</td><td>309,348</td><td>21,654</td><td>331,002</td></tr><tr><td role="rowheader" scope="row">6</td><td>0</td><td>307,858</td><td>21,550</td><td>4,741</td><td>324,667</td><td>331,002</td><td>23,170</td><td>354,172</td></tr><tr><td role="rowheader" scope="row">7</td><td>0</td><td>324,667</td><td>22,727</td><td>5,000</td><td>342,394</td><td>354,172</td><td>24,792</td><td>378,964</td></tr><tr><td role="rowheader" scope="row">8</td><td>0</td><td>342,394</td><td>23,968</td><td>5,273</td><td>361,089</td><td>378,964</td><td>26,528</td><td>405,492</td></tr><tr><td role="rowheader" scope="row">9</td><td>0</td><td>361,089</td><td>25,276</td><td>5,561</td><td>380,804</td><td>405,492</td><td>28,384</td><td>433,876</td></tr><tr><td role="rowheader" scope="row">10</td><td>0</td><td>380,804</td><td>26,656</td><td>5,864</td><td>401,596</td><td>433,876</td><td>30,371</td><td>464,248</td></tr><tr><td role="rowheader" scope="row">11</td><td>0</td><td>401,596</td><td>28,112</td><td>6,185</td><td>423,523</td><td>464,248</td><td>32,497</td><td>496,745</td></tr><tr><td role="rowheader" scope="row">12</td><td>0</td><td>423,523</td><td>29,647</td><td>6,522</td><td>446,648</td><td>496,745</td><td>34,772</td><td>531,517</td></tr><tr><td role="rowheader" scope="row">13</td><td>0</td><td>446,648</td><td>31,265</td><td>6,878</td><td>471,035</td><td>531,517</td><td>37,206</td><td>568,723</td></tr><tr><td role="rowheader" scope="row">14</td><td>0</td><td>471,035</td><td>32,972</td><td>7,254</td><td>496,753</td><td>568,723</td><td>39,811</td><td>608,534</td></tr><tr><td role="rowheader" scope="row">15</td><td>0</td><td>496,753</td><td>34,773</td><td>7,650</td><td>523,876</td><td>608,534</td><td>42,597</td><td>651,131</td></tr><tr><td role="rowheader" scope="row">16</td><td>0</td><td>523,876</td><td>36,671</td><td>8,068</td><td>552,480</td><td>651,131</td><td>45,579</td><td>696,711</td></tr><tr><td role="rowheader" scope="row">17</td><td>0</td><td>552,480</td><td>38,674</td><td>8,508</td><td>582,645</td><td>696,711</td><td>48,770</td><td>745,480</td></tr><tr><td role="rowheader" scope="row">18</td><td>0</td><td>582,645</td><td>40,785</td><td>8,973</td><td>614,457</td><td>745,480</td><td>52,184</td><td>797,664</td></tr><tr><td role="rowheader" scope="row">19</td><td>0</td><td>614,457</td><td>43,012</td><td>9,463</td><td>648,007</td><td>797,664</td><td>55,836</td><td>853,500</td></tr><tr><td role="rowheader" scope="row">20</td><td>0</td><td>648,007</td><td>45,360</td><td>9,979</td><td>683,388</td><td>853,500</td><td>59,745</td><td>913,246</td></tr><tr><td role="rowheader" scope="row">21</td><td>0</td><td>683,388</td><td>47,837</td><td>10,524</td><td>720,701</td><td>913,246</td><td>63,927</td><td>977,173</td></tr><tr><td role="rowheader" scope="row">22</td><td>0</td><td>720,701</td><td>50,449</td><td>11,099</td><td>760,051</td><td>977,173</td><td>68,402</td><td>1,045,575</td></tr><tr><td role="rowheader" scope="row">23</td><td>0</td><td>760,051</td><td>53,204</td><td>11,705</td><td>801,550</td><td>1,045,575</td><td>73,190</td><td>1,118,765</td></tr><tr><td role="rowheader" scope="row">24</td><td>0</td><td>801,550</td><td>56,109</td><td>12,344</td><td>845,315</td><td>1,118,765</td><td>78,314</td><td>1,197,079</td></tr><tr><td role="rowheader" scope="row">25</td><td>0</td><td>845,315</td><td>59,172</td><td>13,018</td><td>891,469</td><td>1,197,079</td><td>83,796</td><td>1,280,874</td></tr><tr><td role="rowheader" scope="row">26</td><td>0</td><td>891,469</td><td>62,403</td><td>13,729</td><td>940,143</td><td>1,280,874</td><td>89,661</td><td>1,370,535</td></tr><tr><td role="rowheader" scope="row">27</td><td>0</td><td>940,143</td><td>65,810</td><td>14,478</td><td>991,475</td><td>1,370,535</td><td>95,937</td><td>1,466,473</td></tr><tr><td role="rowheader" scope="row">28</td><td>0</td><td>991,475</td><td>69,403</td><td>15,269</td><td>1,045,609</td><td>1,466,473</td><td>102,653</td><td>1,569,126</td></tr><tr><td role="rowheader" scope="row">29</td><td>0</td><td>1,045,609</td><td>73,193</td><td>16,102</td><td>1,102,700</td><td>1,569,126</td><td>109,839</td><td>1,678,965</td></tr><tr><td role="rowheader" scope="row">30</td><td>0</td><td>1,102,700</td><td>77,189</td><td>16,982</td><td>1,162,907</td><td>1,678,965</td><td>117,528</td><td>1,796,492</td></tr><tr><td role="rowheader" scope="row">31</td><td>0</td><td>1,162,907</td><td>81,403</td><td>17,909</td><td>1,226,402</td><td>1,796,492</td><td>125,754</td><td>1,922,247</td></tr><tr><td role="rowheader" scope="row">32</td><td>0</td><td>1,226,402</td><td>85,848</td><td>18,887</td><td>1,293,363</td><td>1,922,247</td><td>134,557</td><td>2,056,804</td></tr><tr><td role="rowheader" scope="row">33</td><td>0</td><td>1,293,363</td><td>90,535</td><td>19,918</td><td>1,363,981</td><td>2,056,804</td><td>143,976</td><td>2,200,780</td></tr><tr><td role="rowheader" scope="row">34</td><td>0</td><td>1,363,981</td><td>95,479</td><td>21,005</td><td>1,438,454</td><td>2,200,780</td><td>154,055</td><td>2,354,835</td></tr><tr><td role="rowheader" scope="row">35</td><td>0</td><td>1,438,454</td><td>100,692</td><td>22,152</td><td>1,516,994</td><td>2,354,835</td><td>164,838</td><td>2,519,673</td></tr><tr><td role="rowheader" scope="row">36</td><td>0</td><td>1,516,994</td><td>106,190</td><td>23,362</td><td>1,599,822</td><td>2,519,673</td><td>176,377</td><td>2,696,050</td></tr><tr><td role="rowheader" scope="row">37</td><td>0</td><td>1,599,822</td><td>111,988</td><td>24,637</td><td>1,687,172</td><td>2,696,050</td><td>188,724</td><td>2,884,774</td></tr><tr><td role="rowheader" scope="row">38</td><td>0</td><td>1,687,172</td><td>118,102</td><td>25,982</td><td>1,779,292</td><td>2,884,774</td><td>201,934</td><td>3,086,708</td></tr><tr><td role="rowheader" scope="row">39</td><td>0</td><td>1,779,292</td><td>124,550</td><td>27,401</td><td>1,876,441</td><td>3,086,708</td><td>216,070</td><td>3,302,778</td></tr><tr><td role="rowheader" scope="row">40</td><td>0</td><td>1,876,441</td><td>131,351</td><td>28,897</td><td>1,978,895</td><td>3,302,778</td><td>231,194</td><td>3,533,972</td></tr></table>