Had a request elsewhere about tips on how to handle annuities, which are not my strong suit. If anyone can explain them better, including options for annuities within a 403B, I'd appreciate it.
What are the benefits of holding an annuity within a tax-deferred plan. To me, this would seem to be unnecessary complication.
Annuities offer a death benefit. Your beneficiary would be guaranteed at least what you put (minus any withdrawals) upon your death. You also have the advantage of using a fixed account and dollar cost averaging into the variable side. Plus, some companies offer a spousal protection feature.
Look to a Roth IRA first and be wary of expenses. For a good overview of annuities: Annuities Annuities Part I: The Basics Annuities Part II: Different Types of Annuities Annuities Part III: Payout Options and Annuity Expenses Annuities Part IV: The Bottom Line on Annuities