Annuities

Fixed and fixed-indexed annuities are designed to protect your principal and are backed by the financial strength of the issuing insurance company, with an added layer of state guaranty association protection within limits. They don't expose that money to market losses. The main trade-off is limited liquidity during the surrender period. We only consider products that fit your goals and risk comfort, and we explain the guarantees and limits plainly so you know exactly what stands behind your money.

Yes. Income annuities, and certain annuities with a lifetime income rider, are specifically designed to pay you a guaranteed stream of income for as long as you live — directly addressing the fear of outliving your savings. The payout depends on your age, the amount you put in, and the option you choose. We compare the income options we offer and structure the annuity so it provides a dependable paycheck alongside your Social Security.

A fixed annuity pays a set, guaranteed interest rate for a period, much like a tax-deferred CD, with very predictable growth. A fixed-indexed annuity links your growth to a market index with a floor that protects you from losses, so you can earn more in good years but give up some upside through caps or participation rates. Fixed favors certainty; fixed-indexed favors more growth potential with protection. We match the type to your goals.

With fixed and fixed-indexed annuities, your principal is protected from market losses, so you won't lose value because the market drops. You can, however, lose money to surrender charges if you withdraw more than the contract allows during the early surrender period. Other annuity types carry different risks. We make sure you only commit money you won't need for emergencies and fully understand the surrender terms before you decide.

Generally no. An annuity is best used as one piece of a retirement plan — often to cover essential expenses with guaranteed income or to keep a slice of savings safe — not as the whole strategy, because annuities limit liquidity during the surrender period. Keeping accessible savings for emergencies is important. We help you decide how much, if any, of your savings belongs in an annuity so it complements rather than dominates your plan.

Money inside an annuity grows tax-deferred, so you don't owe taxes on the earnings until you withdraw them. When you take income, the earnings portion is taxed as ordinary income, and withdrawing before age 59½ can trigger an additional tax penalty. How much is taxable depends on whether you funded it with pre-tax or after-tax money. We explain the tax treatment in plain terms and suggest coordinating with your tax advisor so there are no surprises at withdrawal.

A surrender charge is a penalty the insurer applies if you withdraw more than the contract allows during the early years of the annuity, called the surrender period — often several years long. The charge usually starts higher and declines each year until it disappears. Most contracts let you take a limited amount penalty-free annually. Because this limits access to your money, we make sure you only commit funds you won't need for emergencies and explain the schedule before you buy.

Both can offer a guaranteed fixed rate, but they differ in key ways. A CD is a bank product, FDIC-insured, usually shorter-term, with interest taxed each year. A fixed annuity is an insurance product whose earnings grow tax-deferred until withdrawal, often over a longer term, and it can be turned into lifetime income — but it has surrender charges and isn't FDIC-insured. Which fits depends on your time horizon and goals. We compare them honestly for your situation.

Most annuities let you withdraw a limited amount each year — commonly up to around 10% — without a surrender charge, and you can typically begin regular income at a time you choose. Taking more than the free amount during the surrender period triggers a charge, and withdrawals before age 59½ may carry a tax penalty. Because liquidity is limited by design, we size the annuity to a portion of your savings and keep other funds accessible for emergencies.

Not necessarily — it depends on whether your guaranteed income covers your essential expenses. Social Security provides a base of lifetime income, and a pension adds to it; if those already cover your needs, you may not need more guaranteed income. If there's a gap between your essential costs and your guaranteed income, an income annuity can help fill it. We look at your full retirement picture and help you decide whether, and how much, an annuity adds.