Core Insights - Preparing for retirement involves complex financial planning to ensure a sustainable income stream [1] - Purchasing an annuity should align with specific financial goals and needs to avoid long-term disadvantages [2][3] - Understanding different types of annuities is crucial for making informed decisions [4] Annuity Types - Fixed annuities provide guaranteed interest and predictable income, suitable for conservative investors [7] - Variable annuities offer growth potential through market-based investments, ideal for those with a higher risk tolerance [7] - Immediate annuities start payouts within 12 months, catering to retirees needing immediate income [7] - Deferred annuities accumulate value over time, designed for individuals still in the workforce seeking tax-deferred growth [7] Financial Assessment - Conducting a thorough inventory of financial needs is essential as retirement approaches [5] - Young individuals with multiple income sources may benefit from variable annuities, while those prioritizing stability might prefer fixed annuities [6]