Is Your Annuity
Actually Working
for You?

You've been pitched an annuity

An insurance agent is recommending an annuity product. Before you sign, you deserve an objective, second-opinion review from a retirement specialist focused on your complete financial picture.

You're rolling over a 401(k) or IRA

You're leaving a job or entering retirement and wondering if an annuity makes sense for part of your rollover. The answer depends on your full retirement plan: income, taxes, healthcare, and legacy. Not just the product.

You already own an annuity

You have an existing annuity and aren't sure if it's working for you, or whether the fees, surrender charges, and riders are appropriate for your situation.

Jim and Linda retired at 65. They were nervous about how to balance income and growth without running out of money. They divided their savings into three buckets: immediate, soon, and later. The immediate bucket contained an annuity, providing steady income for daily living expenses. This allowed their long-term investments to remain invested, securing their financial future while ensuring present-day stability.

Sarah was recently widowed. After losing the lesser of two Social Security benefits, she was concerned about covering her essential expenses. She opted for an annuity that created a floor of income, covering her living expenses, utilities, and groceries, as well as a portion of her lifestyle spending. This guaranteed income relieved her anxiety about market fluctuations affecting her ability to afford basic needs.

As Mark considered retirement, he was wary of the possibility of retiring into a recession. When his time finally came, the market dipped and his fears were realized. Fortunately, Mark was able to rely on his annuity as a buffer for income, preventing him from having to withdraw from his investments at a potential loss. This preserved his portfolio by giving Mark the benefit of time, allowing his invested assets the opportunity to recover.

Laura, a conservative investor approaching retirement, wanted to stabilize her portfolio without sacrificing all growth potential. Rather than holding a large bond allocation with minimal yield, she allocated a portion to a MYGA (Multi-Year Guaranteed Annuity), locking in a competitive guaranteed rate for five years. This gave her the stability she needed while keeping her equity allocation intact for long-term growth.

After her husband, Bill, passed away unexpectedly, Pat felt lost. Suddenly her vision of retirement looked much different than she had imagined. Despite the changes she was forced to face, her financial plan remained steady. Using the joint-life annuity they had chosen, along with a survivorship benefit from Bill's pension, Pat's lifestyle remained steady. This financial stability was crucial for Pat, ensuring she could successfully navigate a challenging time of uncertainty.

Doug and Emily, recently retired, were concerned about how to manage rising healthcare costs throughout retirement. They chose to dedicate part of their annuity income specifically towards their ongoing medical expenses. This strategic allocation ensured they didn't have to worry about how they would pay for their healthcare needs, allowing them to enjoy their retirement without financial stress. Their annuity also offers the added benefit of providing increased payouts in the event that they experience a significant healthcare event in the future.

As Kevin and Rita approached retirement, they were faced with a decision regarding their Social Security benefits. Both healthy and active, with a history of longevity in their families, they were keen to maximize their Social Security benefits by delaying until age 70. The challenge was that they were ready to retire now. They incorporated an annuity bridge to help support their lifestyle in the initial years of retirement, allowing their benefits to receive maximum delayed credits. By doing so, they significantly increased their eventual benefits, ensuring a more robust financial foundation for later retirement years.

As George got older, he felt his priorities begin to adjust. He was very comfortable, and no longer concerned about the need for money. His focus shifted to the opportunity to leave a larger impact with the time he had left. George was able to take a portion of his assets and use them to create annual gifts to his church, and a handful of charities that he loved to support, reducing his tax burden in the process. George further enhanced his strategy by taking some of the required distributions that he was forced to take and used them to fund a life insurance strategy to leave a tax-free legacy to his children and grandchildren.

Fixed Indexed Annuity

Growth linked to a market index with a floor of zero. You can't lose principal due to market drops. Popular for accumulation.

Multi-Year Guaranteed Annuity

A fixed interest rate guaranteed for a set number of years. The CD alternative for retirement savings.

Single Premium Immediate Annuity

Converts a lump sum into guaranteed income for life or a set period. The purest income annuity.

Variable Annuity

Investment sub-accounts with insurance wrappers. Higher growth potential, higher fees, higher complexity.