Annuity Education
An annuity is a financial product designed to provide a stream of income, typically used for retirement. Here's everything you need to know, in plain language.
You pay into an annuity — either all at once or over time — and in return, the insurer promises to make periodic payments to you in the future.
Annuities offer stability, predictability, and peace of mind: guaranteed income for life, protection against downturns, tax-deferred growth, and reliable retirement income.
They aren't quick-growth investments, stocks, or mutual funds, and they aren't built for short-term liquidity. Early withdrawals may incur penalties and fees.
Used correctly, annuities protect principal while letting you participate in market-linked growth — a foundation for long-term retirement security.
An optional feature on indexed or variable annuities offering a guaranteed income stream starting at a future date you choose.
Multi-Year Guaranteed Annuity — similar to a CD, it provides a fixed interest rate over a set period.
Fixed Index Annuity — market-linked returns with downside protection. Ideal for conservative growth without losing principal.
Single Premium Immediate Annuity — guaranteed lifetime income starting immediately. A personal pension from a lump sum.
Deferred Income (or "Longevity") Annuity — begins paying later in life to manage the risk of outliving your money.
Qualified Longevity Annuity Contract — lets you defer required minimum distributions (RMDs) in qualified accounts like IRAs.
Yes. Annuities are insurance products. Fixed and indexed annuities are not subject to stock-market volatility and are backed by insurance carriers.
Some annuities offer principal protection, while others may involve market risk. Choosing the right type is key — and that's where guidance matters.
Depending on your contract, annuities can offer death benefits that pass to your beneficiaries.
Annuities can feel complicated — but you don't have to figure them out alone. Let's explore how one could fit your strategy.
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