Which Is Better Mutual Funds Or Annuities? 
That is an excellent question ! The answer is kind of difficult , though , as both are good for different reasons , and both might be bad for you for different reasons . Annuities are generally a safer vehicle for guaranteeing an income stream during retirement , as they typically will have provisions that will not allow you to lose your initial investment amount , even if everything else tanked . But annuities require that you set that initial investment aside for a number of years , and that can be an issue , if you have severe cash flow issues.Mutual funds can bring a greater return that a lot of annuities , but unless you have really done your homework , the fees associated with your fund can eat the return alive , and you can end up not making the return that you could have . Statistically most mutual funds make money , but again , if you invest in the wrong one , there 's no guarantee that you recoup your initial investment , let alone a profit . You also need to do the work to get the money out of your fund , unlike an annuity that has a set payment amount and schedule . A really solid retirement plan is diversified , and can include both types of investments ; If you 're forced to choose one or the other , that 's a decision that needs a lot of soul searching and planning , and a trusted adviser to help . I hope that helps , thanks for asking ! 