01
Accumulation
Evaluate crediting potential for long-term resources, along with limits on growth and access.
Annuity StrategiesStart with a purpose.
Start with a purpose.
Compare the provisions.
Annuity features can serve different goals. Their value depends on the contract, the cost, and the job they need to do in your overall plan.
Which need are you trying to address?
02
Retirement income
Consider a future income stream or an optional income feature with specific rules.
03
Protection
Evaluate contractual protections alongside insurer credit risk, inflation, and liquidity needs.
04
Longevity risk
Consider whether lifetime payment features address a potential gap if retirement lasts longer than expected.
05
Sequence-of-returns risk
Discuss how dependable income sources and accessible reserves may affect the need to sell investments during declines.
06
Legacy planning
Review death benefits and beneficiary provisions in coordination with income and liquidity goals.
Optional features deserve a closer look.
| Feature | Potential purpose | Important limitation |
|---|---|---|
| Income rider | Contractual withdrawal or income benefits where available. | May involve fees, eligibility rules, and a benefit base separate from cash value. |
| Enhanced death benefit / multiplier | Potentially increase an eligible benefit for beneficiaries. | Not available in every product; enhancement may apply only to a defined benefit base or event. |
| Additional / flexible premiums | Allow future contributions where the product permits. | Limits, timing rules, new surrender periods, and availability can apply. |
| Premium bonus | Add a stated credit under specified conditions. | May carry vesting rules, recapture provisions, longer surrender periods, or different pricing elsewhere. |
| Tax-deferred growth | Generally defer tax on contract earnings until distribution. | Deferral is not tax elimination. An annuity inside an IRA does not add another layer of tax deferral. |
A bonus is not a reason to skip the contract.
A headline bonus or an enhanced benefit can be appealing. Compare the entire arrangement: how long you must hold the contract, whether credits can be recaptured, which value receives the enhancement, and what other limits or costs apply.
Ask for an explanation of guaranteed and non-guaranteed elements. An illustrated income base or death-benefit value may not be available as a cash withdrawal.
Annuities are long-term insurance contracts and are not suitable for everyone. Surrender periods, surrender charges, withdrawal restrictions, fees, and tax consequences may apply. Guarantees are subject to contract terms and the claims-paying ability of the issuing insurance company. Product features and availability vary by carrier and state.
Fit the strategy to the whole picture.
An annuity doesn’t have to be your whole retirement plan. Some people may have no appropriate annuity need. Others may benefit from a modest protected-income allocation. Someone else may have a larger income-planning need.
There is no universal percentage. The decision depends on your income, expenses, assets, liabilities, debt, time horizon, liquidity, risk tolerance, retirement and legacy goals, health and longevity considerations, and existing resources such as Social Security, pensions, and other investments.
YOUR GOALS. YOUR NEEDS. OUR FOCUS.
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Tell us what matters to you. We’ll begin with your goals, your needs, and the questions on your mind.