Those saving for retirement need to consider the vehicles that can best drive growth. Two common means of building a retirement nest egg are annuities and brokerage accounts. Which one is right for you? This largely depends on your situation and goals.
Take a look at the comparison below to help guide your decision.
Annuity
- Insurance company assumes the market risk
- Index ladder growth
- Low fees can be obtained
- Choice of protection benefits or living benefits
- Lifetime income
- Tax-deferred and advantage growth
- Some restrictions of liquidity
- Social Security timing / maximization
- Permission to spend in retirement
Brokerage
- Client assumes market risk
- Up and down stock volatility
- Imbedded fees
- Liquid
- Step up in tax basis
- Afraid to spend or withdrawal
Do you have questions over which savings vehicle is right for you? Call us today and find out how we can help.