Annuity Education

Understand annuities — the simple way

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.

What is an annuity?

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.

Why consider one?

Annuities offer stability, predictability, and peace of mind: guaranteed income for life, protection against downturns, tax-deferred growth, and reliable retirement income.

What annuities are not

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.

Built for the long game

Used correctly, annuities protect principal while letting you participate in market-linked growth — a foundation for long-term retirement security.

The Lineup

Types of annuities explained

Income Rider

An optional feature on indexed or variable annuities offering a guaranteed income stream starting at a future date you choose.

MYGA

Multi-Year Guaranteed Annuity — similar to a CD, it provides a fixed interest rate over a set period.

FIA

Fixed Index Annuity — market-linked returns with downside protection. Ideal for conservative growth without losing principal.

SPIA

Single Premium Immediate Annuity — guaranteed lifetime income starting immediately. A personal pension from a lump sum.

DIA

Deferred Income (or "Longevity") Annuity — begins paying later in life to manage the risk of outliving your money.

QLAC

Qualified Longevity Annuity Contract — lets you defer required minimum distributions (RMDs) in qualified accounts like IRAs.

FAQ

Common annuity questions, answered

Are annuities safe?

Yes. Annuities are insurance products. Fixed and indexed annuities are not subject to stock-market volatility and are backed by insurance carriers.

Can I lose money in an annuity?

Some annuities offer principal protection, while others may involve market risk. Choosing the right type is key — and that's where guidance matters.

What happens if I die before using my annuity?

Depending on your contract, annuities can offer death benefits that pass to your beneficiaries.

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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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