Annuities and the alternatives for steady income
An annuity is a contract with an insurance company: you pay in, and it pays you – now or later. Investor.gov explains the types (fixed, variable, indexed) and what to ask about fees, surrender charges and guarantees.
Questions to ask before you buy
- What is the payout rate, and how much of it is your own money coming back?
- What are the fees and surrender charges, and for how long?
- How strong is the insurer? Guarantees depend on its ability to pay.
- Can you get your money out if you need it?
Alternatives that also pay income
- A ladder of Treasuries or high-grade bonds maturing year by year.
- Bond and income funds, money-market funds.
- REITs and dividend payers – income can change, prices move.
Compare the income on one scale
IncomeGrid has 40,000+ investment options screened with risk levels 1–5. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently). It does not sell annuities or anything else; it shows what the market pays so you can compare.
Sources
More guides
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