When you choose a 401k rollover annuity, you can move the funds from your 401k account into an annuity with an insurance provider. With this type of retirement investment, you can realize several advantages over the other options in front of you.
1. Guaranteed Principal
One of the biggest advantages of this type of investment is that your principal will be guaranteed. With other types of investments such as stocks or mutual funds, you could lose your initial investment at any point. This provides some security when planning for retirement.
By choosing an annuity, you will have a lot of flexibility in your investment choices. You can put the money into a fixed annuity that gives you a fixed rate of return or you can choose from many investment choices such as mutual funds or stocks.
3. Income Protection
You can set up the annuity to provide you with a payment every month for the rest of your life. Once you retire, you will have a steady income waiting for you.
4. Death Benefit Protection
With many of the annuity products on the market, you can get death benefit protection. This provides your beneficiaries with money in the event of your death.