A GUARANTEED stream of income! An annuity can be a great alternative to CDs and money market accounts. Keep in mind when comparing an annuity to other investments like mutual funds or individual stocks, annuities grow tax deferred and can provide a guaranteed income for life. Although other investments may have a greater potential for growth they also bear greater risk.
Consider purchasing an annuity as part of a long term strategy if you looking to de-risk your overall financial plan, are looking for something safe and with a higher return than CDs or a guaranteed income.
If you are interested in deferring income from your retirement accounts beyond age 70 ½ or if you have substantial balances in those accounts and are concerned about the tax due each year on your Required Minimum Distributions (RMDs), you may want to learn about QLACs (Qualified Longevity Annuity Contract)