Annuities
Income you can't outlive — and the price of that certainty.
An annuity trades liquidity for a guarantee. That can be an excellent deal or a poor one. The difference is the contract, and we read it with you.
Types
Three structures, three trade-offs
Multi-Year Guaranteed (MYGA)
- Guaranteed
- A stated rate for a stated term, typically 3–10 years.
- Trade-off
- Surrender charges if you exit early; the rate resets at the end of the term.
- Typically suits
- Money with a known holding period and no appetite for market risk.
Fixed indexed
- Guaranteed
- Principal protected against index losses, with a 0% floor in negative years.
- Trade-off
- Upside is limited by caps, participation rates or spreads that the carrier can change.
- Typically suits
- Savers who want some market-linked growth without drawdowns.
Income / SPIA
- Guaranteed
- A contractual payment for life, or for a set period, starting on a date you choose.
- Trade-off
- You give up access to the principal. Most versions leave nothing to heirs.
- Typically suits
- Covering fixed expenses that must be paid regardless of markets.
Plain talk
Four things most annuity pitches skip
Surrender schedules are real money
A 7-year contract with a 7% first-year charge means an early exit costs thousands. We show the schedule before you sign, not in the delivery packet.
Caps are not returns
A 9% cap does not mean 9% a year. Credited interest depends on index behaviour, the crediting method and the reset period.
Riders cost basis points
Guaranteed income riders typically charge 0.75%–1.25% annually against the benefit base. Sometimes worth it, often not.
Guarantees are carrier promises
They are backed by the issuing insurer's claims-paying ability, not by FDIC insurance. Carrier ratings matter.
When we tell people not to buy one
If you may need the money inside the surrender period, if you have no other liquid reserves, or if an employer pension already covers your fixed costs, an annuity is usually the wrong tool. We would rather say that now than place a contract you regret.
Ask us directlyLife insurance and annuities are not FDIC insured, are not bank deposits, are not guaranteed by any bank, and may lose value. Guarantees are subject to the claims-paying ability of the issuing insurance company. Withdrawals before age 59½ may be subject to a 10% federal tax penalty.