Core Insights - The article discusses the critical decision retirees face regarding converting their savings into a reliable income stream, focusing on the choice between systematic withdrawals from IRAs and purchasing annuities [1] Taxation Considerations - Both IRAs and annuities are generally taxed similarly, with traditional IRAs funded by pre-tax contributions and nonqualified annuities funded by after-tax dollars, both growing tax-deferred [3] - A key distinction is that with nonqualified annuities, only the earnings portion is taxable, while withdrawals from traditional IRAs are fully taxable [4] Stability vs. Flexibility - Annuities offer stability, with fixed indexed or fixed annuities ensuring that the principal is never at risk, appealing to retirees seeking predictable income and protection from market volatility [5] - IRAs provide flexibility, allowing retirees to choose how their money is invested across various asset classes, enabling adjustments based on market conditions or personal circumstances [6]