Annuity vs 401(k): Which Vehicle Is Actually Better for Your Retirement?

Anyone choosing a 401(k) must do so knowing the volatility risks of the market, while opting for an annuity provides guaranteed income post-retirement.

Choosing a fixed annuity guarantees an interest rate and a predictable payment schedule. This is a low-risk option, providing security in income and interest rates.

Variable annuities come with risks that can lead to fluctuating payments based on mutual fund investments. While riskier, they also allow for greater potential returns.

Indexed annuities connect your income to market index performance. This blends features of both fixed and variable annuities, providing opportunities while managing risks.

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