Was looking for any advice on this subject since I have very little experience in finance!
While investors can set up a retirement income withdrawal plan using a portfolio of stocks or mutual funds, there is always the threat of a decline in the market having a negative impact on the portfolio, thus potentially jeopardizing the security of one’s retirement income. Meanwhile, an annuity that offers an “income rider” (typically a small percentage fee is assessed of approximately 1% or less), the income is guaranteed, regardless of whether the stock market is up or down for the year. It is important to determine the amount of annual income that is needed before investing in an annuity. The financial advisor can provide an illustration that shows the annual guaranteed income, including reasonable expectations for growth of the annuity account value.
