A retirement plan has many different working parts. There’s your Social Security benefit, the money in your 401(k) or IRA, and the taxes you owe on that money. You might also have other investments that can gain or lose money in the stock market.
At some point, every investor has to decide how they will use all of these different components to put together an income plan. Annuities are specifically designed to pay investors a regular income once they no longer have a paycheck to rely on, but that doesn’t mean they’re right for your situation. We’ve put together a simple list of pros and cons to help you get started.