The most important objective of your retirement plan is to create reliable income for you and your spouse. For that reason, you need to tap into financial resources that will produce income, in a secure and consistent manner.
This is the definition of an annuity. At its simplest level an annuity simply means you have invested your money in a way that is structured to pay you a future, guaranteed income you (and your spouse) can’t outlive.
The most appealing benefit of an annuity is that it will not only provide you with income, but it also provides you with a place to invest your money that is protected from downside risk.
Now you might not like an annuity and that’s fine. If you feel this way, then make sure to cancel your social security benefits and any pension benefits you might have – because those are annuities.