Turn savings into a paycheck you can’t outlive.
Annuities are a long-term retirement planning tool – used well, they create guaranteed income, protect principal, and let your money grow tax-deferred. We walk every client through the trade-offs in plain language before anything is signed.
A contract designed to do one thing well: pay you reliably over time.
An annuity is a contract with an insurance company. You contribute money – either as a lump sum or over time – and in exchange the insurer guarantees growth, income, or both, according to the type of annuity you choose.
Annuities are not a single product. They’re a category. The right one depends on what you’re trying to solve: guaranteed retirement income, principal protection, tax-deferred growth, or a backstop against living longer than you planned.
Like life insurance, annuities reward patience. They’re a long-horizon tool – and not the right fit for short-term money.
Each one solves a different retirement problem.
We will help you understand which (if any) fits your plan – there’s no one-size answer here.
Fixed Annuity
Guaranteed rate, predictable growth.
A contract with a fixed interest rate set by the insurer. Your principal is protected and growth is predictable — the closest annuity comes to a CD, with tax-deferred accumulation.
Conservative savers who want guaranteed growth and no market exposure.
- Guaranteed interest rate
- Principal protected
- Tax-deferred growth
- Optional lifetime income
Indexed Annuity
Growth tied to an index — with a floor.
Growth is linked to a market index (often the S&P 500), with a cap on the upside and a floor (often 0%) on the downside. You participate in market growth without market losses.
Pre-retirees who want growth potential without losing principal in down years.
- Upside tied to market index
- Floor protects from losses
- Tax-deferred
- Optional lifetime income riders
Immediate Annuity (SPIA)
Lump-sum in. Income for life out.
You hand the insurer a single premium and they begin paying you a guaranteed income — for life, or for a set period. The simplest way to convert savings into a paycheck.
Retirees who want to turn a portion of savings into guaranteed monthly income.
- Income begins immediately
- Guaranteed for life option
- Predictable monthly amount
- Simple structure
Variable Annuity
Market exposure with optional riders.
Growth is tied to investment sub-accounts (similar to mutual funds). Higher growth potential and higher risk — often paired with living-benefit riders that guarantee a minimum income.
Long-horizon investors comfortable with market risk who want optional income guarantees.
- Market growth potential
- Optional living-benefit riders
- Tax-deferred
- Wide investment choice
Four reasons annuities show up in a real retirement plan.
Tax-Deferred Growth
Earnings compound tax-deferred until withdrawal — a meaningful advantage over 20+ years.
Guaranteed Income Options
Convert savings into a paycheck you can’t outlive — a hedge against living longer than you planned.
Principal Protection
Fixed and indexed annuities protect your principal from market loss, even in volatile years.
Living Benefit Riders
Optional riders can guarantee minimum income, account growth, or long-term-care funding.
Annuities aren’t for everyone – and we’ll tell you so.
- You’re within 10 years of retirement or already retired
- You want guaranteed lifetime income on top of Social Security
- You’ve maxed your 401(k) and IRA and want more tax-deferral
- You want growth potential without market downside
- You’re worried about outliving your savings
- −You need access to the full balance in the next few years
- −You’re looking for short-term growth or speculation
- −You haven’t funded basic emergency savings yet
- −You’re uncomfortable with surrender periods
- −A simpler tool (CDs, money market) does the job for you
Annuities are one piece of a larger plan.
Wondering if an annuity fits your retirement plan?
We will walk you through the math, the trade-offs, and your options – in plain language, with no pressure to buy.
Annuities are long-term insurance contracts and may include surrender charges, fees, and limitations. Guarantees are subject to the claims-paying ability of the issuing insurer. Withdrawals before age 59½ may be subject to a 10% federal tax penalty. This page is educational and not tax, legal, or investment advice. License #6008292.