Annuities are insurance products designed to help address the risk of outliving your financial resources and may provide tax-deferred accumulation and income during retirement.
I work with clients to explore fixed annuity solutions based on their financial circumstances, retirement goals, income needs, and desired level of stability.
Annuities
Retirement income solutions designed around your long-term financial goals
Understanding Annuities
Annuities can be structured in several different ways.
Two of the primary distinctions are when income begins and how the annuity’s value or interest is determined:
Immediate Annuities Designed to begin providing income within a relatively short period after the annuity is purchased
Deferred Annuities Designed to accumulate value before income payments begin, potentially providing income later in retirement
Fixed vs. Variable Annuities
Fixed Annuities earn interest according to rates and guarantees established by the insurance company and the terms of the contract, and are generally designed to provide greater predictability and stability than market-based variable annuities.
Variable Annuities are a separate type of annuity in which contract values and benefits can vary based on investments in separate accounts. Variable annuities involve investment risk and require additional securities registration and insurance licensing.
My current practice is able to offer fixed annuities to clients.
What can a fixed annuity provide?
Tax-Deferred Growth
Earnings in a non-qualified annuity generally grow tax-deferred until they are withdrawn.
The tax treatment of qualified retirement assets can differ depending on how the annuity is funded and used.
Principal Protection
Certain fixed annuities are designed to protect the contract value from direct exposure to market losses, subject to the terms of the contract and the guarantees provided by the issuing insurance company.
Predictable Income
A fixed annuity may provide a predictable source of retirement income, depending on the contract and income option selected.
Retirement Income Planning
An annuity can be one component of a broader retirement income strategy.
Depending on your circumstances, it may complement Social Security, retirement accounts, investments, and other sources of retirement income.
Fixed Annuity Income Options
When an annuity is converted into an income stream, the payment option selected determines how long payments continue and what may happen to the remaining benefits after the annuitant's death.
Life Annuity
Provides income for the annuitant’s lifetime. Payments generally stop when the annuitant dies, subject to the terms of the contract.
Life with Period Certain
Provides lifetime income while also guaranteeing payments for a specified period. If the annuitant dies during the guaranteed period, payments may continue to a designated beneficiary for the remainder of that period.
Joint and Survivor
Provides income for two individuals, generally continuing for the lifetime of both and then continuing to the surviving annuitant according to the percentage selected.
Fixed Period
Provides income for a specified number of years rather than for the lifetime of the annuitant.
Life with Cash or Refund Provision
Certain contracts can provide a death benefit or refund provision designed to return remaining value to a beneficiary if the annuitant dies before receiving an amount specified by the contract.
Lump Sum
Rather than converting the annuity into a series of income payments, the contract owner may have the option to receive the available value as a lump-sum distribution, subject to the terms of the contract and any applicable charges or tax consequences.
Who might consider a fixed annuity?
Fixed annuities may be worth exploring for individuals who:
Are approaching or entering retirement
Want to create a predictable source of retirement income
Have accumulated retirement or other financial assets
Are concerned about market volatility
Want to explore tax-deferred accumulation
Are considering how to turn accumulated assets into retirement income
Want to incorporate guaranteed income into a broader retirement strategy
Own a business and are planning for future retirement income
An annuity isn’t necessarily appropriate for everyone. The right approach depends on your financial circumstances, objectives, time horizon, existing assets, income needs, and the specific terms of the product being considered.
How can an annuity fit into my retirement plan?
Annuity needs can vary considerably depending on your age, financial circumstances, retirement goals, existing assets, income needs, and desired level of stability.
Complete the brief form below, and I’ll review your information and follow up within two business days.
Already own an annuity?
I’m also happy to review your existing annuity with you and help you understand its current features, guarantees, costs, surrender provisions, and potential role in your overall financial strategy.
If you’re considering replacing or exchanging an existing annuity, we’ll also discuss the potential benefits, costs, and implications before making a decision.
Annuities available in*:
California
Washington
*Licensing does not guarantee that every insurance product or carrier is available in every state. Carrier appointments, underwriting requirements, product availability, and eligibility vary by state and by individual risk.
If I am not currently licensed to offer the insurance solution(s) you are seeking in your state, I may be able to obtain the necessary licensing or connect you with a licensed professional who can assist you.