Annuities & Retirement Income
Annuities, explained honestly
The short answer
An annuity is a contract with an insurance company that can provide guaranteed income — sometimes for life. Annuities can be useful tools for some families and unnecessary for others. The honest answer is: it depends.
What an annuity can offer
- Income you can’t outlive, which can cover essential expenses
- Protection from market losses (with certain types)
- Predictability that helps some retirees feel more secure
What to understand before considering one
- Surrender periods — many annuities limit access to your money for a number of years without a penalty.
- Caps and limits — growth in a fixed indexed annuity is typically limited in exchange for downside protection.
- Guarantees — depend on the claims-paying ability of the issuing insurance company.
- Fit — an annuity should solve a specific problem in your plan, not simply be sold to you.
Tracy’s approach is to explain the trade-offs plainly and only discuss an annuity if it genuinely fits your complete situation.
Have questions about your own situation? Tracy is glad to talk it through with you — clearly and without pressure.
Educational only. Annuity availability, features, caps, and surrender terms vary by state and company. Guarantees are subject to the claims-paying ability of the issuing insurance company. This is not tax, legal, or investment advice. Consult qualified professionals.