Annuities are financial products offered by insurance companies that provide a guaranteed income stream for a specified period of time, often for the rest of your life. They can be a valuable tool for retirement planning and protecting your investments.

Market volatility can impact the performance of the investments underlying an annuity. If the market is down when you annuitize your contract, it can reduce the amount of income you receive. However, some annuities offer features that protect against market volatility, such as guaranteed minimum income benefits.

One strategy is to diversify your investments across different asset classes to reduce risk. Another strategy is to consider purchasing an annuity with a guaranteed income benefit or other features that protect against market downturns. Working with a financial advisor can help you develop a personalized plan that takes market volatility into account.

Annuities can be a good option for protecting against market volatility, especially if you choose a product with features that guarantee a minimum level of income regardless of market performance. However, it’s important to carefully consider the fees, charges, and terms of the annuity before making a decision.