Annuities: the good, the bad, and the fine print
Fixed immediate annuities from insurers convert a lump sum into guaranteed lifetime income — useful for longevity risk in retirement.
Variable and indexed annuities are frequently loaded with 2–3% annual fees. A low-cost index fund + the 4% rule usually beats them net of costs.
This calculator shows the pure time-value math — no fees, no mortality credits. Real annuity quotes will differ; always compare 3+ carriers.