I agree with everyone else. An annuity is not a replacement for your 401k.
The only type of annuity that I've read is okay in the right situation is an immediate annuity. That's where someone, most likely a retiree, hands over a lump sum of money and starts getting a guaranteed monthly check for the rest of his life. The rate is typically quite a bit higher than what you could get elsewhere for a fixed rate investment because when you die, the company keeps the principal. For folks who haven't saved enough for retirement or want the guaranteed income, it can be a good way to go.
That's not the kind of annuity you are referring to, though.
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Steve
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