Alternative to Annuities

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Real Estate Investment Trusts (REITs)

What Are They?

  • REITs are companies that own, operate, or finance income-generating real estate.
  • They offer regular income streams, diversification, and long-term capital appreciation.

How Do They Differ from Annuities?

  • Unlike annuities, REITs are subject to market risks and can fluctuate in value.
  • They provide the potential for higher returns compared to fixed annuities.
Alternative To Annuities

Dividend Stocks

What Are They?

  • Stocks of companies that pay regular dividends.
  • Dividends are portions of a company’s profit paid to shareholders.

How Do They Differ from Annuities?

  • Dividend stocks offer the potential for capital growth and dividend income.
  • The income from dividend stocks can be less predictable than annuities.
Alternative To Annuity

Bonds

What Are They?

  • Bonds are debt securities issued by corporations or governments.
  • Investors earn interest on the invested principal.

How Do They Differ from Annuities?

  • Bonds typically have fixed interest rates and a defined maturity date.
  • They may offer lower risk but also lower potential returns compared to variable annuities.

Certificates of Deposit (CDs)

What Are They?

  • CDs are time deposits offered by banks with a fixed interest rate and maturity date.
  • Funds are locked in for a certain period, typically ranging from a few months to several years.

How Do They Differ from Annuities?

Alternatives Comparison Table

Investment TypeIncome PotentialMarket RiskLiquidity
REITsHighHighMedium
Dividend StocksMedium to HighMediumHigh
BondsLow to MediumLow to MediumLow to Medium
CDsLowVery LowLow
 Alternatives To Annuities

Conclusion

Choosing between annuities and an annuity alternative, like REITs, dividend stocks, bonds, or CDs, depends on your risk tolerance, income needs, and investment goals. Each option offers a unique balance of risk, return, and liquidity. To understand which investment best suits your financial objectives, contact us today for a free quote.

 Alternatives To Annuity

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What alternative to annuities has the highest rate of return?

The answer to this question depends on the type of investor and their goals. Generally speaking, stocks have historically provided the highest rate of return over long periods. Investing in a diversified stock portfolio is the best way to maximize returns while minimizing risk. However, it also comes with greater volatility, and short-term losses can occur.

What alternative to annuities is the safest investment?

The safest investment depends on the individual investor and their goals. Generally speaking, low-risk investments such as CDs (certificates of deposit) or U.S. Treasury Bonds are considered safe investments since they typically have guaranteed returns with low levels of volatility.

How do I know which investment strategy is best for me?

Assessing your needs and risk tolerance before deciding on an investment strategy is essential. A financial advisor can be a great resource to help you develop the best plan for your goals.

What is a better alternative to an annuity?

A better alternative to an annuity is investing in a diversified portfolio. While annuities provide guaranteed income, they often come with high fees and limited flexibility. By investing in stocks, bonds, and other assets, individuals can potentially achieve higher returns and have greater control over their investments. It’s important to consult with a financial advisor to determine the best strategy based on individual goals and risk tolerance.

What is better than an annuity for retirement?

While annuities can provide a steady stream of income during retirement, there are alternatives that may offer more flexibility and potential for growth. Some options include diversifying investments across stocks and bonds, utilizing a 401(k) or IRA, or considering a retirement savings plan with tax advantages. It’s important to consult with a financial advisor to determine the best strategy based on individual needs and goals.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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