retirement

Immediate annuities: Do-it-yourself pensions

Annuity strategies

Most financial experts recommend that you don't sink all your retirement funds into an immediate annuity.

Because it is guaranteed -- you get the same amount each month regardless of how the stock market is performing -- investors get less of a "return" than if they would put money in high-yielding, riskier investments such as individual securities or stock funds. In the spectrum of investments, annuities are more conservative than equities but offer a better return than a bank certificate of deposit or government bonds. In any event, it's always a good idea to diversify among investments.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Financial stress hits quarterbacks, too

For their retirement, NFL players partly rely on a multiemployer plan that's on shaky ground, not unlike some other plans.  ... Read more

advertisement
Partner Center
advertisement

Connect with us