Why Should I Buy Annuities? 
That is a great question ! There are several reasons why annuities can be a good investment , and some reasons why they may not be . The downside ? the purpose of an annuity is to save up for a later payout , so there are steep penalties for taking out the money early . Once you 've put your money in , you have to leave it there for a period of time , so you need to be able to leave that cash alone . You 'll need to have an adequate savings , and cash flow to cover whatever may occur before the withdrawal time comes . Depending upon the annuity , there might mot be the return that you might get from an alternative investment . The pluses ? There are great guarantees . You will know exactly what you have at risk , and what your potential gains will be . It 's unusual to lose money with the right annuity , and most will guarantee no less than what you started it with , so even if the markets and interest rates tank , you get back no worse than what you put in . Ca n't say that about bonds , money markets , or stocks . Annuities can also be structured to give lifelong payouts , and include the lifespans of both you and your spouse . Having an income that you ca n't out live is also a big plus . They are passive investments , which means you do n't have to keep track of what they are doing , you buy and let them roll , or look at them once a year and adjust , if you decide to . The security of knowing you will be receiving a lifelong monthly payment is a huge part of financial peace of mind . Thanks for asking ! 