What is an annuity? 

To make it simple, it’s a promising form of insurance agreeing to a fixed series of payments to another party or company over a period of time. Additionally, an annuity offers guaranteed features such as principle protection and lifetime income.  

Types of annuities:

Immediate annuity:

A guarantee to receive income payments for life so long as initial funds are deposited into an insurance company.

Fixed annuity:

Similarly, a fixed annuity is commonly compared to CD Investments, a fixed annuity requires an initial deposit sum to be made, the interest rates are paid, income does not have to be taken and can be used for accumulation.

Fixed Indexed annuity :

An Indexed Annuity is a combination of the protection principles of fixed annuities. However,  it allows participation in major stock indexes.

Variable annuity:

Works as a tax-deferred retirement plan, similar to mutual funds, allowing you to invest in various sub-accounts.

Income Rider Myths 

Additionally, an Income Rider is considered a benefit to deferred annuities, they are not always what they seem. As a matter of fact, this is due to ‘smoke and mirrors’ Income riders. Correspondingly, they typically don’t add as much as they sound like they add to your retirement income plan once the true rate of return is factored into your analysis.

To summarize…

Overall, annuities can be harmful to your wealth if used incorrectly but can also be a secure part of a retirement plan if used correctly.

However, what drives us is that too often we’ve seen retiree’s being sold annuities that they don’t truly understand but are convinced to buy based on a false understanding. Often, the annuities aren’t appropriate for their needs because they haven’t done a financial plan before determining what type of annuity they need.

Ultimately, the biggest mistakes we often see with retirees and annuities are:

Buy Annuity & hope it fits ⇒ Realize Annuity is not what you thought ⇒ Retire with Regret

When the correct order of purchasing an annuity should be:

Plan ⇒ Analyze ⇒ Retirement with Peace of mind.

 Put your annuity to the test!

Testing annuities is something we do for free here at annuityedu.com. The only way to know if this annuity is a good fit for you is to have it tested. We’ll use our proprietary calculator to illustrate for you how this annuity will likely perform in your specific situation.

To be sure, Click here to request a complimentary, no-obligation Annuitycheck® Report to test an existing annuity or an annuity before you buy. If your agent was honest with you, the numbers will match up – if not, at least you know before you buy.

If you have an existing Annuity, you may need an Annuity Rescue, to rescue you from being upside down or rescue your annuity from drowning in fees.

You may think you’re trapped with your hands tied behind your back, but like Rocky Balboa: Nothing’s over ’til it’s over.

Let us keep moving forward and learn the various options to increase your guaranteed lifetime income and reduce fees to put money back in your pocket.

but if there are options to increase your Guaranteed lifetime income and reduce your fees, wouldn’t you want to know about them? Contact us and request an Annuitycheck® Rescue Report on your current Annuity.

Given these points, for more detailed information please feel free to download our Pre-Retiree Annuity Guide located on the left. Furthermore, if you need help understanding more about how your annuity really works so you can make the best decision for your retirement, not your agents, contact us!

Last but not least, feel free to follow our Facebook page to keep up with our latest reviews.

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If you want to know more about our unbiased Annuity reviews please contact us at [email protected]