re: Phone call with Fidelity rep

It all depends what you want. If you only wanted guaranteed regular income and do not want to grow an investment to leave after you die, then an annuity will do this. You are giving up all upside for very low risk (there is always some risk such as the annuity company could fold) and usually lose the money when you die (some products vary). If you are willing to accept some risk, then just investing in an S&P 500 index fund or Total Market Index would give you growth and income in the form of dividends. I personally would choose the index fund but annuities are a tool to consider if you understand what you are giving up.