Will Rogers once said “I am more concerned of a return of my principal, than a return on my principal”. Annuities provide a way to invest while also guaranteeing you a return of your principal. As many investors experienced recently in the stock market decline losses on not only their savings, but losses exceeding what they put into it. If that same investor would have invested in an annuity, they wouldn’t have lost any principal and would have locked in the gains they made along the way.
Although you will not ride the highs of the market, you will not ride the lows either. Investing in an annuity, will ease the stress of relying on the stock market to dictate how you will be able to live throughout your retirement. If you want an investment that will guarantee you preservation of principal, then ask your retirement specialist about an annuity.