Answer :

Final answer:

Annuities guarantee a lifetime payout, making them a secure investment choice for retirement planning.


Explanation:

Annuities guarantee a payout one cannot outlive. Annuities provide a fixed sum of money paid every year, either bought in a lump sum or over time, ensuring a reliable income stream during retirement.

Compared to savings accounts, mutual funds, and stocks which have varying degrees of risk, annuities stand out as a safer investment option due to their fixed payouts.

Private market options such as 401(k)s also offer annuities with special tax status, allowing individuals to defer taxes until the funds are withdrawn.


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