Probably the most prominent expert in the field of estate planning and tax saving is J. K. Lasser. One of his examples of tax saving through the purchase of an annuity is worth repeating: A man can buy a single premium deferred retirement annuity for $100,000. This means that for a cash payment of $100,000 he can have an annuity which begins some time in the future, and as time goes on the annuity has more and more of a cash value as it earns. This is what the annuity is worth year by year: The difference between the initial value of the annuity ($91,720) and $100,000, the purchase price, is $8,280.

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