What are Your Choices?

There are two kinds of after-tax annuities — one that helps you save for retirement and one that helps you turn savings into retirement income.

• Deferred annuity — Buy a deferred annuity when you want to accumulate savings tax deferred for years or decades before you start taking income.
• Immediate annuity — Buy an immediate annuity if you are ready to turn a portion of your retirement savings into a steady stream of income payments.

Both choices offer different investment options
When you select an after-tax annuity, you will also have to choose how to invest your money. Your choice should align with how much risk you are willing to take and should fit into your overall asset allocation strategy. Your two basic choices are:

• Guaranteed investments — Buy an annuity that guarantees an interest rate if you are not comfortable with market volatility impacting your savings or income. All guarantees are based upon the issuer's claims paying ability.
• Variable investments — Buy an annuity that offers variable fund options if you want the potential for higher returns and are comfortable with the potential for loss due to poor market performance.

Keep in mind that there are always inherent risks associated with investing in securities. As with all securities, your accumulations can increase or decrease; depending on how well the underlying investments perform over time. TIAA-CREF does not guarantee the performance of the underlying investments.

Is an annuity right for you?
Annuities and life stages

Visit our Learning Center to learn more about annuities:

• Investing Basics
• The Four Steps to Consider When Selecting an Annuity
• Dismantling the Myths of Annuities