Fixed-income funds can give your 401(k) more principal protection and reliable income, but they also tend to yield lower gains. These funds typically pay higher interest than a money market 4. You can choose to have lifetime income. A fixed annuity may help protect you against the risk of outliving your assets and provide a reliable retirement income stream for as long as you live, depending on the payout type you select. 5. There are multiple annuitization options. Also referred to as fixed-income funds, this kind of mutual fund owns Treasurys, municipal bonds or corporate bonds. Bond fund investors tend to want income preservation and yield. Balanced funds . Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in a money market fund. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. If the money is invested in mutual funds, the financial advisor might make a commission of about 2%. If it is invested in an annuity that holds the same or similar mutual funds, the advisor could nusoTa.

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