Should you consider purchasing an annuity within your 401(k) plan?

When it comes to retirement planning, many individuals are faced with the decision of whether or not to buy an annuity as part of their 401(k) portfolio. An annuity can provide a guaranteed stream of income during retirement, but it also comes with its own set of pros and cons.

Key Points to Consider:

• An annuity can offer a steady income stream that is not affected by market fluctuations.
• Some annuities come with high fees and surrender charges, which can eat into your returns.
• It’s important to assess your individual financial goals and risk tolerance before purchasing an annuity.
• Consider speaking with a financial advisor to determine if an annuity is the right choice for your retirement portfolio.

Ultimately, the decision to buy an annuity within your 401(k) plan will depend on your unique financial situation and retirement goals. It’s important to weigh the pros and cons carefully before making a decision.