Annuities
Turn a portion of your savings into a paycheck you can't outlive.
An annuity is a contract with an insurance carrier that converts a lump sum or series of payments into guaranteed income, either now or at a future date. Used correctly, it covers your essential expenses so market volatility never threatens the basics.
The main types
Fixed annuities credit a declared interest rate for a set term — the simplest option and the closest analog to a CD. Fixed indexed annuities credit interest linked to an index with a floor, trading upside cap for principal protection. Immediate annuities convert a lump sum into income starting right away.
- Fixed: declared rate, defined term, full principal protection
- Fixed indexed: index-linked growth with a 0% floor
- Immediate: income begins within 12 months
- Deferred income: income begins at a chosen future date, often at a higher payout
Fees, surrender periods, and riders
Annuities typically carry a surrender period — often five to ten years — during which withdrawals above a free amount incur a charge. Income riders that guarantee lifetime withdrawals carry an annual fee. These are not hidden if someone shows them to you, and we always do.
How much of your portfolio belongs in one
A common approach is to annuitize just enough to cover essential monthly expenses that Social Security does not already cover, leaving the rest of the portfolio invested for growth and liquidity. Annuities are a tool for a slice of the plan, not the whole plan.
Annuities FAQs
Someone is always watching over your family.
That's the whole idea. Let's make sure the plan behind it is real, funded, and matched to the people you love.