Annuity vs 401(k): Which is Right for Your Retirement?

This article explores the differences between annuities and 401(k) plans, helping individuals make informed retirement decisions. An annuity is a contract with an insurance company that provides guaranteed income for a specific period or life, offering tax advantages and protection from market volatility. However, annuities can have high fees and limited liquidity. A 401(k) is an employer-sponsored savings plan that allows tax-deferred contributions, often with employer matches and diverse investment options. While it offers growth potential, it lacks guaranteed income and carries market risk. The article emphasizes that selecting between the two depends on personal financial goals and risk tolerance, and sometimes a combination of both may be beneficial.