A Wall Street Journal article by Stan Haithcock made some good points about annuities. One thing to keep in mind is to base your decisions and expectations on the guarantees within the policy. Don't base your decisions only on the best case scenarios and set yourself up for possibly disappointing results. Also understand that there are many type of Annuities.
According to the article, fixed indexed annuities were actually designed to complete with CD returns. It goes on to say that the good news about an indexed annuity is that it is a fixed annuity, which means that your principal is protected. In addition, gains (if any) are locked in on an annual basis and typically on the contract anniversary date. He tells people that the upside to an indexed annuity is that there is no downside (which is a good thing), and the downside is that there is typically very limited upside (i.e. CD type returns). You can't have it all, which is OK when you align your return expectations with the realities of the policy.
Unfortunately his original web article is no longer available, but the original source web link is below.
Source: http://www.marketwatch.com/story/annuity-dreams-and-contractual-realities-2013-10-22/print?guid=E75291F6-772A-40E9-B94E-8DD76E4B7FAF
Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334.