Protect Your Future Today

An annuity is a written contract typically between you and a life insurance company in which the insurance company makes a series of regularly spaced payments to you in return for a premium or premiums you have paid. An annuity is not life insurance. A life insurance policy provides benefits to your family if you die.

What is better a 401K or an annuity?

With a 401(k), your gains and losses are uncapped, which means there's no limit on what you stand to gain or lose on your investment. Many types of annuities cap both gains and losses. This protects your initial investment but also creates the danger of missing out on some of the market's upside.

Are annuities taxed?

Because annuities grow tax-deferred, you do not owe income taxes until you withdraw money or begin receiving payments. Upon withdrawal, the money will be taxed as income if you purchased the annuity with pre-tax funds. You'll only owe taxes on the annuity's gains if it was purchased with post-tax dollars.

Why do financial advisors push annuities?

Rising interest rates, pressure on Social Security, unpredictable markets and longevity risks are making annuities ever more attractive as a part of retirement planning.

Do you know what type of retirement product saw sales soar 44% in 2022 — and received praise and positive publicity in the finance field as consumers saw their other retirement investments lose value?  It’s not cryptocurrency! It’s not some hedge fund. Or junk bonds. It’s easily understood and won’t be seen as a fad in future years.

I’ve described it as a product that “doesn’t make your retirement; it makes your retirement better.”

Its technical term is single premium immediate annuity, or SPIA. Some finance experts call it a simple annuity.