Annuities

What Is an Annuity?

A Paycheck for the Rest of Your Life

An annuity is a contract with an insurance company. You contribute a lump sum or series of payments, and in return the carrier guarantees you a stream of income, either for a set period or for the rest of your life, no matter how long you live.

      The retirement problem annuities solve: Most people don't know how long they'll live, which makes it impossible to know how much to withdraw from a 401k or IRA each year. Annuities eliminate that uncertainty by guaranteeing income no matter what, even if you live to 100.
    

Types of Annuities

Which Annuity Is Right for You?

Type	How It Works	Best For	Risk Level
Immediate Annuity	Begin receiving payments within 12 months of purchase. Convert a lump sum into instant income.	Retirees who need income right away	Very Low
Deferred Annuity	Contributions grow tax-deferred over an accumulation phase before income payments begin at a future date.	Pre-retirees building for the future	Low–Medium
Fixed Annuity	Earns a guaranteed interest rate. Completely predictable; market doesn't affect your balance.	Conservative investors who want certainty	Lowest
Fixed Index Annuity (FIA) Popular	Growth linked to a market index with 0.25% floor. Gains with no losses. No cap on some products.	Those who want growth potential without market risk	Low
Variable Annuity	Invested in sub-accounts (like mutual funds). Returns vary with market performance.	Those who can tolerate market fluctuations	Medium–High

      Our most requested product: The Fixed Index Annuity (FIA) with a 0.25% floor, participation in index gains, no ongoing management fees, and guaranteed lifetime income rider options. We work with multiple carriers to find the best participation rates.
    

Key Benefits

Why Annuities Belong in Your Retirement Plan

Income You Can't Outlive

A lifetime income rider guarantees payments continue no matter how long you live, even if your account balance reaches $0.

Principal Protection

Fixed and index annuities protect your principal. You can never lose your initial investment to market downturns.

Tax-Deferred Growth

Your money grows without annual tax drag. You only pay taxes when you withdraw, and you control the timing.

No Contribution Limits

Unlike IRAs and 401ks, annuities have no IRS contribution cap. Ideal for moving large sums into protected growth.

Survivor Benefits

Many annuities include death benefit provisions; your remaining account value or a guaranteed amount passes to heirs.

No RMDs on Non-Qualified

Non-IRA annuities aren't subject to required minimum distributions at 73. You decide when and how much to withdraw.

Common Questions

Annuity FAQs

Is my money locked up in an annuity? +

Most annuities include a surrender period (typically 5–10 years) during which early withdrawals may trigger a surrender charge. However, most contracts allow 10% penalty-free withdrawals annually, and all funds become freely accessible after the surrender period ends.

How is an annuity different from a CD? +

Both offer principal protection and guaranteed returns, but annuities offer tax-deferred growth (CDs don't), no contribution limits, lifetime income options, and often higher rates. A Fixed Index Annuity also gives you market-linked upside potential that a CD cannot.

What happens to my annuity when I die? +

Most annuities include a death benefit. Your beneficiaries typically receive either the remaining account value or a guaranteed minimum, whichever is greater. This passes outside of probate, often within days.

Can I move my 401k or IRA into an annuity? +

Yes. A 401k or IRA rollover into a "qualified" annuity is a common strategy, especially near retirement. Done correctly, the rollover is tax-free and you keep the same tax-deferred status while adding principal protection and guaranteed income.

Are annuities safe? +

Fixed and fixed index annuities are issued by insurance carriers and are backed by the carrier's reserves. Most states have a state guarantee association that provides additional protection (typically $250,000) if a carrier becomes insolvent. We only work with A-rated or better carriers.