Question

How do I compare an annuity with a regular investment portfolio?

An annuity has been proposed to a person close to retirement and wants to compare guarantees and income with liquidity and complexity. I am trying to figure out how to compare an annuity with a regular investment portfolio.

Asked in Cedar Rapids, IA · May 10, 2026 · 1 answer

Answer
Soradin

Soradin

General information

Posted Jul 24, 2026

Review guaranteed outcomes, such as paying a known debt, with investment outcomes that are expected but uncertain. Evaluate the proposed annuity with the income already provided by Social Security or pensions and with lower complexity alternatives. For a couple making this decision, survivor needs and access to cash can matter as much as the expected return on the investment itself.

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