The ability to shelter your earnings from the impact of taxes is one of the most powerful tools available for helping you to build and preserve wealth for retirement or other long-term goals.

Without the continuous drag of taxes, your money grows faster. Faster growth means a larger nest egg. And here is how it works:

First, your principal earns interest each year. Then, your accumulating interest earns interest. Finally, the money you would have ordinarily paid to the IRS in taxes (and possibly to state and/or local agencies) remains in your annuity to earn even more interest for you.

Over time, the additional interest earnings on these tax savings can really add up. Depending on your tax-bracket, tax deferral can mean as much as 30% to 40% faster growth of your money compared to a taxable account paying the same rate.