Should I Put My 401(k) into an Annuity?

Published July 29, 2019

Putting a portion of your 401(k) savings into an annuity makes sense if you’re looking to diversify your retirement savings and add a guaranteed piece to your portfolio. Your 401(k) is a basket of savings tied to market performance that does not protect you from the risk of living longer than expected (and needing an income for longer). Investing in an annuity, on the other hand, generates a guaranteed amount of guaranteed monthly income that ensures your money lasts as long as you do. In this way, using a portion of your 401(k) to purchase an income annuity is like turning a portion of your retirement savings into a pension.

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If you’re interested in reading more, here are several articles on annuities.

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Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.

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