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.


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