Is it best to annuitize an annuity or just take the annual interest and save the principal?

Rick B

It is best to steer clear of annuities. They are expensive and rarely needed in most estate plans.

Eva

If you annuitize it, you give your principal to the insurance company, lose control of how it is invested, and may have limited payout options. Newer annuities allow systematic withdrawals without losing control of the principal.

NA

I wouldn't tie up all my money in an annuity. However, some single people prefer to put, say 1/2, of their money into an annuity because it pays a higher rate than they can get themselves and will pay until they die, even if they run out of the rest of their money.