Annuities
Annuities are a powerful way to grow your savings and secure long-term financial stability.
Which type of annuity best fits your investment goals? Let’s break it down
What is an Annuity?
An annuity is a contract between you and an insurance company. You invest money (either all at once or over time), and in return, the insurer promises to pay you a steady stream of income in the future usually during retirement.
It’s basically you turning a lump sum into a paycheck that can last for life. Not bad, right?
How Do Annuities Work?
1.You Pay Into It
You can make:
A lump sum payment (say $100,000 from a 401k rollover), or
Series of payments over time.
2.The Money Grows
Depending on the annuity type, your money can grow:
Fixed: Earns a guaranteed interest rate. Safe and predictable.
Variable: Invested in sub-accounts (like mutual funds). Potential for growth and risk.
Indexed: Linked to a market index (like the S&P 500). Some upside, some protection.
3. You Start Receiving Payments
You can choose:
Immediate annuity: Start getting paid right away.
Deferred annuity: Wait and let it grow—then start drawing income later (say, at retirement).
4. Payout Options
You get to choose:
Lifetime income: Payments last as long as you live (peace of mind central).
Period certain: Set number of years, like 10 or 20.
Joint life: Covers both you and your spouse.
Why Do People Use Annuities?
✅ Guaranteed income for life (helps fight the fear of outliving your savings)
✅ Tax-deferred growth (until you withdraw)
✅ Can include death benefits or riders for long-term care
✅ Safe haven from market volatility (in some types)
⚠️ Things to Watch For:
🧾 Fees and surrender charges—some can be high if you pull out early
📉 Inflation risk—if payouts are fixed, purchasing power could shrink
⏳ Lack of liquidity—once the money’s in, it's not easy to access without penalty
✨ Bottom Line:
Annuities can be a smart way to create dependable income for retirement especially if you’ve maxed out your 401(k) or want a safety net you can’t outlive.
But not all annuities are created equal. Some are amazing. Some… not so much.
👉 Contact All Assured Solutions today
All Assured Solutions