You might be asking Yourself

What Is An Annuity?

When it comes to retirement income, an annuity might be a good alternative for a retiree. Annuities can present retirees with the option of fixed regular payments. So, how does utilizing annuities for retirement work? First, let’s discuss what an annuity is and isn’t.

First, Let's Discuss

What An Annuity is and Isn't

Annuities can be used to fund your lifestyle in retirement.

There are a few different types of annuities. These include fixed annuities, fixed indexed annuities (FIAs), and also variable annuities. A fixed annuity will protect your money, but the interest rate is fixed. Usually, the rate is lower than the rate you could receive from an FIA or variable annuity. A variable annuity, however, bears a greater risk. This is because its rate is determined by the stock market. As such, your principal balance is at risk in a variable annuity.

Alternatively, fixed index annuities (FIAs) are not invested in the stock market.

Instead, a fixed index annuity is a contract with an insurance company that could generate potential gains through an index. An extra benefit of fixed index annuities for retirement is that your retirement savings are protected by the insurance company issuing the annuity, keeping your hard-earned money safe. Additionally, certain types of fixed index annuities allow for a reasonable rate of return.* Because of these factors, an FIA may be the right choice for retirement for certain retirees.

What is annuity income exactly? Annuity income is a way to pay for your lifestyle after retirement. Specifically, if you choose a fixed index annuity (FIA), you could have income for life. 

couple looking at computer together fixed indexed annuities nashville tn
Let's Talk About

Annuity Myths

When talking about annuities certain myths surround them.

For example, you may have heard some financial professionals might say annuities are “bad”. Why is that? Well, for one thing, it is important to remember that not all annuities are the same. Certain types of annuities, like variable annuities, are just as risky as investing in the stock market. For example, with a variable annuity if the stock market drops you could lose your principal.

When considering annuity strategies it is important to consider your risk tolerance. A higher rate of return could mean more risk. Specific types of annuities, such as fixed index annuities, can provide protection as well as a reasonable rate of return.

Annuities Then Vs. Annuities Now

Previously, retirees did not have many annuity options available to them.

Some provided safety for your principal but they had a very low rate of return. Or other annuities that offered better interest rates came with a great deal of risk of losing your principle. Truthfully, neither of these options was beneficial to retirees.

However, within the 10 years or so a lot has changed in the annuity industry. Now retirees have choices to best fit their own unique needs. For example, now an annuity can offer protection for your money and a reasonable rate of return. Or, you could purchase an annuity that will offer a lifetime income stream. Also, you can choose from extra annuity benefits like income riders, beneficiary options, and more.

Contact us today to learn how a retirement annuity plan could work for you.

Get Educated About

Planning for Retirement Income With an Annuity

At Turney Financial Group, LLC, we believe retirees should know as much as they can about their choices that could impact their retirement. We hold continuing education seminars for our clients and the surrounding community that focus on topics like retirement income strategies and life insurance. At our events, retirees and pre-retirees can gain information about how the market works.

Feel free to schedule a one-on-one, no-obligation meeting with an annuity planning professional to talk about your specific retirement needs. During these meetings, we will discuss many factors, like:

  • What stage of retirement are you in?
  • What types of assets do you currently have?
  • What is your current risk assessment?
  • Annuity income vs potential expenses
  • And much much more!

Once we get to know your financial situation and your retirement goals, we can help you decide which types of insurance products or services best fit your retirement strategy.

Could An Annuity Be a good strategy For Your Retirement?

With so many annuity options to pick from, how do you know which choice is the best one for you? Turney Financial Group, LLC is here to help. We take the time to learn about your needs and goals for retirement. We also prioritize educating our clients on both the good and the bad and to help them make an informed decision regarding their retirement. 

Call us today if you are interested in hearing how an annuity could be the right retirement strategy for you. 

*Reasonable rate of return over time. 

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