Annuities
Retirement Income You Can’t Outlive
An annuity is a contract between you and an insurance company designed to help grow your money and turn it into reliable income—often for the rest of your life.
You contribute a lump sum or a series of payments, and in return, the insurance company provides income either immediately or at a future date. Many people use annuities to create predictable retirement income, protect principal, and reduce market risk.
Annuities can be structured to meet different goals—income now, income later, or accumulation with safeguards along the way.
How Annuities Can Help
Depending on the type you choose, annuities may offer:
- Lifetime Income – Guaranteed income you can’t outlive
- Principal Protection Options – Protection from market losses (for certain products)
- Tax-Deferred Growth – Earnings grow tax-deferred until withdrawn
- Probate Avoidance – Named beneficiaries can receive proceeds directly
- Creditor Protection – May offer protection under applicable state laws
- Minimum Guarantees – Built-in contractual guarantees
- Flexible Income Timing – Start income now or defer it for future needs
Annuities are often a strong fit for individuals who are more conservative or want to balance growth with protection.
Types of Annuities
- Fixed Annuity - Offers a stated interest rate for a defined period. Designed for safety and predictable growth.
- Fixed Indexed Annuity (FIA) - Links growth potential to a market index while protecting against market loss (subject to caps, spreads, or participation rates).
- Variable Annuity - Offers investment subaccounts tied to the market. Greater growth potential—with greater risk.
- Immediate Annuity - Income begins shortly after purchase. Often used to convert a lump sum into guaranteed income right away.
- Deferred Annuity - Designed for accumulation now and income later.
- Single-Premium Annuity - Funded with one lump-sum payment.
- Flexible-Premium Annuity - Allows multiple contributions over time.
Is an Annuity Right for You?
The right strategy depends on your answers to a few important questions:
- At this stage of life, is protecting what you’ve built more important than taking on additional market risk?
- What is a fair and realistic rate of return for your goals?
- What level of risk are you comfortable with—high, moderate, low, or none?
- When will you need income from your accounts?
- Will you be contributing additional funds over time?
- When do you expect to access the money?
- If you could fix one financial concern today, what would it be—income certainty, market volatility, tax exposure, or legacy planning
Independent Guidance Matters
We work with multiple insurance carriers to compare annuity options based on your specific goals, timeline, and risk tolerance. Our role is to help you understand the trade-offs clearly—so you can make a confident, informed decision.
If your priority is creating dependable income while protecting your retirement savings, an annuity may deserve a closer look.
Important Considerations
Annuities are long-term insurance products and may include surrender charges, fees, and market risk (for variable products). Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Withdrawals may be subject to taxes and, if taken before age 59½, may incur a 10% federal penalty.
Let’s review your current retirement strategy and determine whether an annuity fits into your overall plan.
