It’s easy to long for the days of retirement, but it’s difficult to prepare for it. The options of creating a fund for retirement are constantly expanding, so it’s important that as you prepare, you know the options you have for your financial security. One of the best ways to build your savings is through personal investments that allow for your money and savings to grow over time. The more commonly known method of investing for retirement is the option of a 401K. So what is it that separates a 401K from annuities? Annuity Genius wants to break down the differences so that you can compare what each of these can offer to your retirement plan.
Annuities are essentially a form of life insurance that are designed to provide you with a form of income for the remainder of your life, rather than the large sum of money at your death. This form of investment also allows for some control in regards to the money that goes into it. You can make a one time payment, or you can make multiple payments as you would with a 401K. This form of investment also allows for you to control when you receive your return and for how long. Often, these investments are more costly, but they do provide an income during your lifetime rather than post it, so determining when you’ll need the financial aid needs to be taken into consideration also.
401K’s are offered through your workplace. 401Ks also aren’t investments. The funds are taken from your paycheck and put into stocks and bonds to grow over time. 401Ks also often provide an opportunity for your workplace to match the amount of money that you’re putting in, allowing for an opportunity for a higher return. A huge thing that separates 401Ks from annuities is that there is a penalty for pulling out funds. These accounts are intended for retirement, so any funds that are taken out have interest accumulate for the payback.
Talk to an expert at Annuity Genius and allow for us to help you determine what’s your best option for a retirement plan. We take your goals and personal factors into consideration and work hard at creating a plan that will suit you. Speak with one of our experts today!