The cd earning at 2+% is taxable income so you do not get full replacement. The call option is also taxable. I see no way to recreate the tax deferral nature of the annuity. As mentioned; Do it tax-deferred in your IRA.Do it tax-free in your Roth.Buy the "safe leg" (CD, bond port. etc.) in a marginable account, and you then also have some degree of the tax-free distribution features (margin loans instead of policy loans) of the Indexed Universal Life contracts (except limited to 50% Reg-T loan limits... and more like 30% or less if you're allergic to those unpleasant margin calls ;~)The primary reasons to have an insurance carrier do it for you rather than DIY is the bottom line performance and extension of features (like 90% tax-free access in the IULs.)If you want the tax-free access of IULs, and you're not a young 20-something building from scratch, but rather a 40-50-60+something with a significant amount to shelter... you can't "build it yourself" because you can't sweep that much capital out of the jaws of the IRS into tax-free ROTHs due to annual contribution limits.The insurance carriers can squeeze a 6-8% safe yield* out of their bond and dividend portfolio (* "safe" enough to place their reserves up as a guarantee to principal.) That 6-8% is obviously a significant margin above the 1+% annual chump change available in a CD, and provides a *LOT* more upside capture from option spread placement.Its *STILL* doable yourself... but its extremely hard to beat (or even come close to matching) the best in the game, even net of their "egregious" loads, fees, or splits. If you can secure a "safe" 6-8% yield on a DIY basis in the current environment... why even bother chasing the home-runs beyond that at all? Do it in a ROTH from the outset, compound that out over 20-40 years, tax-free, and you're sitting pretty.***Cheers,Dave DonhoffLeverage Planner(*** Now if someone would PLEASE fix the bug in my time machine???)
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