When planning for retirement, one of the biggest decisions is whether to keep your savings in a 401k or transition some or all of it into an annuity. While 401ks offer market growth potential, they also come with risks, fees, and uncertainty about how long your money will last. Annuities, on the other hand, can provide guaranteed lifetime income with potentially higher payout rates versus traditional drawdown strategies. At Diversified Insurance Brokers, we help clients compare annuities vs 401ks to design safer, more predictable retirement plans.

Core Question: Growth vs. Guaranteed Income

A 401k is designed for accumulation—tax-deferred growth with investment choice and the possibility of higher returns, but no promise your balance will last. An annuity converts assets into income you can’t outlive. You give up some market upside to gain a contr