Rolling your 401(k) into an annuity? Here’s what you need to know
September 30, 2025 by Rachel Christian
While some insurers will issue an annuity for as little as $10,000, the reality is it usually takes a six-figure investment to produce a meaningful income in retirement.
For the average American, the bulk of their net worth isn’t sitting in cash — it’s tied up in a 401(k) or similar employer-sponsored retirement plans. In 2022, 60.3 percent of households owned a retirement account, with a median value of $75,000, according to Census Bureau data. So for those looking to fund an annuity, a rollover from a workplace plan is one way to do it.
Wink’s Moore on the Market: Rachel Christian- did you know that you can purchase an annuity with as little as $10? (That’s right, you read that correctly.)
And I don’t know about “…the reality is it usually takes a six-figure investment to produce a meaningful income in retirement.” That really depends on the annuity purchaser, their goals, needs and objectives.
Choosing an annuity depends on much more than the “…fees, guarantees and [your] payout goal.” How about the liquidity, death benefit, potential for interest earned and more?
When are people going to learn that annuities are not intended to compete with the potential earnings on stocks and other securities? Annuities are an insurance product, and having a guaranteed paycheck for life has a “cost.” So what if the annuity has “less growth potential-” this product is purchased for RISK MITIGATION.
I’m interested to hear what my followers think of the second paragraph, above. Let’s hear how much guaranteed income you can get for less than a “six-figure investment.”- sjm
