It probably comes as no surprise to you that one of the main reasons for investing in the stock market is to protect against inflation, which gradually erodes the value of our dollars over time. While keeping your money safely under a mattress certainly protects against market risk, it does not shield you from inflation risk as your money steadily decreases in value.
Annuities are a popular sales product of commissioned salespeople in the insurance and investment world. Ask someone about an annuity they purchased and 9 out of 10 times they will say it was sold to them, not “I bought” or “I chose” an annuity. Many offer promises of guaranteed rates of return, income for life and tax avoidance. But those promises only