Tax deferral benefit of annuities for cash accumulation strategy for retirement plan with 10percent return per yr 4088541883

1. Tax-Deferred Currently-Taxable
Account Value of Account Value of an
End of Year an Annuity 10% Annuity earning
of Annuity ROR 10% per yr Difference
1 $11,000 $10,750 $250
5 $67,156 $62,440 $4,716
10 $175,312 $152,081 $23,230
15 $349,497 $280,772 $68,725
20 $630,025 $465,525 $164,500
25 $1,081,818 $730,762 $351,056
30 $1,809,434 $1,111,544 $697,891
35 $2,981,268 $1,658,205 $1,323,063
40 $4,868,518 $2,443,008 $2,425,5111