It’s Time To Get Serious About Retirement

However far away retirement is for you, it can be overwhelming to decide on an annuity vs IRA. Don’t let fear stop you from making your future a priority. Here is a rundown of what you need to know about your options.


An annuity is an investment that ensures income once you are of retirement age, with disbursement choices ranging from four times a year to one single liquidation. You can choose between a fixed-rate annuity, meaning investing decisions are controlled by your bank, or a variable-rate annuity in which you make the investment choices. The following are significant factors to consider about annuities:

  • Money is taxed once it is withdrawn.
  • There are no limits on contributions or income.


IRAs are individual retirement accounts available in two different forms, Roth and traditional, the main difference being how they are taxed. Roth withdrawals are tax-free because they consist of money that has already been taxed. The money from traditional IRAs is taxed on removal, similar to your income. IRAs also have other considerations:

  • The IRS sets limits on contributions.
  • There is an early withdrawal penalty of 10%.

No matter your age, if you have not started planning for your retirement, it is time to get serious about the possibilities. Evaluate the differences between annuities and IRAs to decide on what works for you.