Ask a Fool: Should I Buy an Annuity for Retirement Income?

Ask a Fool: Should I Buy an Annuity for Retirement Income?

Q: I have a substantial amount of money in my 401(k), but I’m wondering if I’d be better off buying an annuity and guaranteeing myself a certain amount of retirement income.

An annuity may seem like a great idea for a worry-free retirement. After all, you give a company some money, and you get a stream of guaranteed income for the rest of your life, starting either right away ( immediate annuity ) or at some point in the future (deferred annuity). This can certainly give retirees peace of mind, especially when compared to a stock and bond portfolio […]

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