From a simple spread sheet and figuring a 8% annual return on a 36k annuity, I would have roughly 773k in 13years which would return 54k per year and would be "financially independent" based on my current salary as this would yield $61,900/yr in interest minus the 10% early withdrawal penalty.The downfall with this approach is that if I max this plan out then my take home pay is largely cut and hurts my ability to save and invest in real estate (which is my ultimate goal)2.)

annuities are in the 4%, savings is 0, Dividend stocks are in 2-6%. 

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m)The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company  (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2017, the solo 401k contribution limit is $54,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

So I've been talking with my wife about the benefits to real estate investing vs. other forms of investing (stocks, bonds, annuities, etc.).

Again I don't know what the condition was or the urgency for money from the seller, but that I think it's Bills pointI'm going to use an analogy of financial planning and life insuranceIf I'm talking to a father that has a wife and four kids, I going to talk about term convertible life insurance and disability income, I'm not gonna talk about whole life insurance and I'm not going to talk about an annuity because it's not appropriate.And Im going to make sure he gets a will.Why?

If they are near retirement, they may like an annuity income as well.

He spent 2 years setting the business up and will make a large annuity on the deal.

It can make your investment have returns that are more like an annuity than the higher potential of a rental.Special Assessments. 

There may be an annuity tied to the whole life policy but if you read the "guaranteed" page, you typically see 5-8 years of $0 in your cash value.

So evaluate if where you are going to invest will beat that-- because that is an Annuity that is guaranteed to your creditor.