The single
biggest advantage annuities have over other investments is that they can pay income that won't run out no matter how long you live.
Not exact matches
Obviously, the
biggest advantage of investing in an
annuity is that it guarantees you a certain amount of income on a regular basis once you retire.
So moving funds from a variable
annuity to an IRA doesn't provide any
big tax
advantage on that score.
Despite their many
advantages, however, these types of
annuities also have downsides, the
biggest of which is that in return for a guaranteed payment you lose access to the money you've invested.
Perhaps the
biggest advantage to an
annuity is that you pay no taxes on the income and investment gains of funds placed into an
annuity during the accumulation phase of a deferred
annuity.
The
biggest fallacy the IC reveals, is the «tax
advantages» of all life insurance company products (whole life insurance, AKA VUL, and then fixed
annuities, and variable
annuities).
That is a
big advantage life insurance policies offer over
annuities.