No, but they have to be dealt with in one’s overall financial plan. For people who are petrified of outliving their money and don’t/can’t do arithmetic, an annuity is something to consider.
For me, no way, no how. I would counsel anyone who asked me to avoid annuities. A balanced portfolio, long term, will throw off almost as much income as an annuity, allow you to keep the principal for your heirs, and provide for a little growth.
How many people who win the lottery take the annuity instead of the lump sum, when the lump sum is the better choice?
Another factor is the emotional impact. Some folks CANNOT manage a stash of money. It burns a hole in their pocket. If they have it, they got to spend it all. For those folks, an annuity removes the temptation to spend their nest egg.
I missed where an annuity had bearing on this decision
My RMD blew me out of the water come tax time where it was best to siphon off a portion to a charitable than take it
Wish I had done a ROTH conversion b4 it was 2 late
To those that it affects Roth now or conversion b4 RMD date when ever that comes up.