What is an annuity?

An annuity is a contract between you (the annuity owner) and an insurance company. In return for your payment, the insurance company agrees to provide either a regular stream of income, the right to withdraw up to a certain percentage per year, or even a lump sum payment at some future time (generally, once you retire or pass age 59 1/2).

Is an annuity suitable for me?

For some, annuities can complement a total retirement income strategy to supplement other sources of money during retirement. Annuities have advantages such as allowing you to pay in unlimited premiums and they grow compound tax-deferred. (Upon withdrawals,** you will pay taxes on interest earned and the principal if the annuity was purchased with pre-tax dollars.) However, annuities are not for everyone.

What are the different types of annuities?

There are different types of annuities to meet the specific needs of individual retirees and pre-retirees. Annuity FYI can help simplify the selection process.

The Annuity Qualifier

Help me determine which may be the best annuity for my financial situation.

Retirement Self Assessment

What type of retiree or pre-retiree are you? Take this self-assessment consisting of ten statements designed to help you decide what may be the best use of your retirement dollars.

Annuity Checklist

You want to be well-informed to put your money to work in the best way for your situation. Annuity FYI suggests that, prior to making a purchase decision about an annuity, you consider some ideas about the product, the insurance company behind it, and the licensed professional selling it.

Annuity Warnings

Annuity FYI regularly publishes warnings about potential pitfalls in purchasing an annuity. Read this before you purchase!

Annuities: Find The Right One For You

What type of annuity might best suit your situation? This guide explains the main types of annuities and identifies what to look for in each.

 

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** Withdrawals are subject to income tax and prior to age 59 1/2 a 10% federal penalty tax may apply.

ANNUITY BASICS

Is A Lifetime Annuity Better Than The 4% Withdrawal Method?

There is an ongoing argument in the financial world about which is better: an annuity that guarantees a lifetime payout* or a 4% withdrawal scheduled from your retirement savings or investments. George Mason University’s Mark Warshawsky (1)...

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Create Retirement Income with Immediate or Deferred Income Annuity

U.S. workers are concerned that they will run out of money in retirement, and for good reason. The Insured Retirement Institute asked Baby Boomers if they were confident that they would have enough money to carry them through retirement and …...

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Issues Regarding the Use of Longevity Annuities as QLACs

The government supports longevity annuities as important retirement income planning tools.  Multiple regulations last year made it easier and more beneficial to use these types of annuities within employer-sponsored defined contribution plans. ...

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Indexed Annuities Offer Benefits, But Be Aware of Drawbacks

Indexed annuity sales have been very strong over the past couple of years.  These annuities sometimes get a bad rap in the media so it may be hard to know if they are a product to consider for your retirement …

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Single-Life Income Annuity Part of Pfau’s Retirement Strategy

American Pharoah isn’t the only one out there with a triple crown.  While the horse certainly holds the big title in the sports industry, Wade Pfau says that he has found the triple crown of retirement income strategies.  Robert Bloink...

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First Quarter Annuity Trends Help Forecast the Year

First quarter annuity sales indicate that 2015 could be a good year for annuity products.  This information comes from Learn Bonds’ “Q1 Annuity Sales Reports Indicate Positive Growth.”  After last year’s record breaking...

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ARTICLES & GUIDES

Single-Life Income Annuity Part of Pfau’s Retirement Strategy

Single-Life Income Annuity Part of Pfau’s Retirement Strategy

American Pharoah isn’t the only one out there with a triple crown.  While the horse

Retirement Planning Should Focus More on Longevity Risk

Retirement Planning Should Focus More on Longevity Risk

Longevity risk is one of the most important issues to contend with when you are retirement

Longevity Annuities Are Poised to Become America’s New Pension

Longevity Annuities Are Poised to Become America’s New Pension

In The Garden City News section “The View From Here,” Bob Morgan, Jr. wrote an