Annuities vs Stocks

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Annuities

Annuities have a few key advantages.

First, they offer a guaranteed income stream for life. This can be especially helpful in retirement, when you may not have a regular source of income.

Second, annuities can provide tax-deferred growth. This means that you won’t have to pay taxes on your investment until you withdraw the money.

Annuity Vs Stocks

Stocks

Stocks also have some advantages.

First, they offer the potential for higher returns than annuities. This is because stocks are more volatile than annuities, which means they can go up or down in value. However, this also means that there is a greater risk of loss with stocks.

Second, stocks offer the ability to sell shares for cash if you need them. This can be helpful in retirement, when you may need extra income.

Annuity Vs Stock Market

What If I Could Have The Best Of Both Worlds?

If you’re still unsure whether annuities or stocks are right for you, a hybrid annuity is a third option. A hybrid annuity is an annuity that includes both guaranteed income and the potential for growth. This can give you the best of both worlds – the stability of an annuity with growth potential.

  • A variable annuity grows based on the investment options you choose. There are usually various options to choose from, including stocks, bonds, and mutual funds.
  • A fixed index annuity grows based on changes in an external index, such as the S&P 500, without the risk of loss if the index goes down.
Annuity Vs Stocks

Annuities vs Stocks: The Verdict

It’s important to remember that the best decision for you depends on your personal circumstances and goals. If you are looking for a guaranteed income stream in retirement, an annuity may be the better option. However, if you are willing to take on more risk for the potential of higher returns, then stocks may be the better choice. No matter what you decide, it’s always a good idea to consult a financial advisor who can help you create a plan that meets your needs. Contact us today for a free quote, and let us help you get started on your retirement planning!

Annuity Vs. Stocks. Which Is Better For You? Annuity Or Stocks?

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Questions From Our Readers

Are annuities considered securities?

The classification of annuities as securities depends on their structure. Variable annuities and Registered Index-Linked Annuities (RILAs) are considered securities because their value is tied to the performance of underlying investment options, which can vary and involve investment risk. As such, they are regulated by the Securities and Exchange Commission (SEC). On the other hand, fixed and fixed-indexed annuities are generally not considered securities. These types of annuities provide guaranteed returns or earnings based on a specified index, without direct market investment, and are primarily regulated by state insurance commissioners.

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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