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Retirees who desire to count on a reliable income may be bigger off using annuities than CDs. The advantage of using an annuity over a CD is that a deferred annuity grows tax-deferred, and immediate annuity payouts are only partially taxed. All a CD’s income is taxed as earned. Here’s a path to capture advantage of the annuity’s tax break to give you more income throughout your retirement years.
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