Understanding Annuities is Half the Battle

Annuities are just a product. They are not a plan. So depending on your personal situation, an annuity may or may not be right for you. An annuity can replace an accumulation strategy or create guaranteed growth, and it can even create private pension-like income. But does it make sense for you?

Know the difference

Annuities actually come in all shapes and sizes. It’s important to find the one that fits into your plans.

Immediate Annuity

This type of annuity pays out for the rest of your life and quite possibly has the highest guaranteed lifetime benefit available.. If there’s anything left after that, it goes to the insurance company. If you’d rather leave that money to loved ones, this might not be the best option for you.

Variable Annuity

The variable annuity offers the same benefits as other annuity types, but you'll also be playing the market for better or worse. And don't forget about those fees! We would venture to say that if you have one of these, it's likely because your advisor sold it to you, and it was likely the only option he had up his sleeve.

Fixed Annuity

Fixed annuities are exactly what they say - fixed. Who wouldn't want a guaranteed, consistent rate of return? If you love market volatility, this may not be the product for you. But for all others, it could be a strategic option for creating a return without paying any fees.

Fixed Indexed/Income Annuity

An income annuity is a financial product designed to swap a lump sum amount for guaranteed periodic cash flow (e.g., monthly or annual payments). An income, or immediate annuity, generally starts payment one month after the premium is paid and may continue for as long as the buyer is alive.

Work with a Five Pathways Guide to pick the right strategy - which may include an annuity - to maximize your benefits.

Avoid Unnecessary Fees

Only pay for the good stuff.

Cut the Complexity

Simplify your withdrawal strategy.

Get Penalty-Free Withdrawals

After all, it’s your money.

Combine with Estate Planning

Leave your legacy to loved ones, not an insurance company.

Check out our annuities calculator to get started.

Meet Angie