Final answer:
A deferred annuity or annuities due are preferred as a retirement investment due to potential tax advantages, immediate payments, and guaranteed income.
Step-by-step explanation:
A deferred annuity or annuities due may be preferred as a retirement investment for several reasons. Firstly, a deferred annuity allows individuals to defer paying taxes on the investment earnings until they begin withdrawing funds during retirement, potentially providing tax advantages. Secondly, an annuity due offers immediate payments once the annuity is purchased, which can be advantageous for individuals who need a steady stream of income upon retirement. Thirdly, annuities provide a guaranteed income stream for life or a specified period, providing financial security during retirement.
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