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Annuity vs CD: which is better for retirement?

Quick answer

Annuities and CDs serve different purposes. CDs are best for short-term savings (1-5 years) with FDIC insurance. Annuities are designed for long-term retirement income with potential for higher returns and lifetime income guarantees, but they come with surrender periods and less liquidity.

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Adirondack chairs facing a sunset over the lake with an annuities planning book, the annuity income-floor planning we do for Northern Suburbs retirees
When an annuity actually fits

A floor, not a fortress.

Used right, an annuity is the income floor your retirement budget rests on. Used wrong, it's a high-fee box your money is locked inside. We model both before recommending either.

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