When it comes to retirement, many roads lead to Rome. However, some roads have more potholes, are more winding, or are more likely to be roamed by bandits than others. That is to say that if you don’t want to gamble with your retirement, you probably want a retirement plan that is designed to keep you profitable with minimal risk. Let’s examine how annuities for retirement in Detroit are your optimal option when compared to other retirement plans.

Looking at Three Retirement Options

The three most common retirement plans in the country are IRAs, 401(k)s, and annuities. Each offers a unique set of benefits and have proven effective for millions of people. However, when we take a closer look, we can see how annuities are by far the safest.

Traditional IRA

An IRA is an individual retirement account in which you can allocate pre-tax income towards investments. These investments grow on a tax-deferred basis, which means they do not get taxed until you withdraw the funds. IRAs are perhaps the most common retirement plan among Americans because there is a low barrier to entry despite relatively low contribution limits - $6,000 for people under the age of 50 and $7,000 for those over 50.

What’s the Risk?

IRAs are fundamentally tied to stock market performance. This means that your investments and returns will fluctuate at the whims of the market, which depend on so many variables it can feel like gambling with extra steps at times. Furthermore, your returns are taxed upon withdrawal. This means that there are two avenues for you to have decreased returns:

  • Downturns in the market resulting in lower yields and;
  • Total income taxed when you need it most.

401(k) Plans

401(k)s are employer-provided retirement plans and the spiritual successor of the increasingly more rare pension plans. When you sign up for a 401(k) plan, your employer re-directs a portion of your paycheck to an investment account with options made by you. Many employers offer matching options where they contribute a dollar amount up to a certain percentage of your total contributions.

What is the risk to 401(k) plans?

As with traditional IRA plans, 401(k) performance is tied to the stock market. That means that regardless of your contributions, your returns are by no means guaranteed.


Annuities for retirement in Detroit are guaranteed payments made by an insurance company to an individual. When you enter into an annuity plan, you make payments to an insurer in exchange for payments at a future date as outlined by your contract. This creates a reliable like of income that extends for as many years as you choose or need.

What is the risk to annuities?

Virtually none! Annuities for retirement in Detroit are guaranteed by a contract, so there is no fear that you will not receive your expected payments. You’ll know exactly how much money you are getting, and since they are tied to an insurance entity and not a market, you do not need to worry about fluctuations.

Are You Interested in Annuities for Retirement in Detroit?

If you are considering a safe and stable retirement option, annuities are your best choice. The team at ABB Wealth Strategies is here to guide you and answer all your questions, so there are no surprises. Give us a call today to learn more!