Great Way to Make an Income During Retirement?

by Amanda
(Everett, WA)

So I understand that annuities can be used if, say, you have a settlement from a insurance case or something like that.. But I'm confused on how you work one without something like that. Do you put away money into some kind of account like a savings?

I would avoid not putting someones name on there as a beneficiary, unless you REALLY don't like anyone, because then you just forfeit your money and who knows who gets that hard earned money or settlement. Is that right?

Is it easy to move your 401K into an annuity? Is that possible?

Over all it seems like an excellent idea. I just don't know too much about it. Is it taxed? Does it get paid interest? I would really like to know more for my future retirement.

Also, can you get more out, or is it a set amount you get every month or week? If the economy keeps going down hill how will that effect my money?

It is hard to have your money in a bank account, it would be even harder to have that much money in an account and have to worry about what might happen to it. There are so many ways to put money into so many accounts, how do I know this is my best option?

Money is a very valuable asset, it's not something anyone wants to just throw away. Is an annuity a good investment or am I really better off keeping it in stocks and savings? Thank you for your time.