Make it last…
Annuities: Understanding the Trade-Offs
Annuities can function much like a traditional pension, offering a dependable income stream for life. And while predictable monthly income is appealing, there are several important considerations that lead us to avoid making most annuities a core part of our clients’ financial strategies.
Below are three key reasons we take a more selective approach:
Three Key Reasons
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Some annuities — especially variable annuities — expose your principal to market fluctuations. While this can create strong growth in good markets, it can also result in losses during downturns. We prioritize strategies that protect your financial foundation rather than expose it to unnecessary risk.
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Although annuities offer the benefit of guaranteed lifetime income, many have traditionally produced relatively low returns. Over time, these modest returns can diminish your wealth—especially as inflation erodes the future purchasing power of your money.
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Annuities often include fees that cover various guarantees and features. But in many cases, these costs can reduce efficiency within a retirement plan. Our responsibility is to ensure every dollar is working in your best interest, and not all annuity fee structures align with that goal.
A Better, More Balanced Solution
A new type of indexed annuity — available only through select financial professionals — has recently become available. This particular strategy addresses our largest concerns while offering meaningful benefits for long-term retirement planning.
Here’s how it stands out:
Safety
Because this annuity uses an indexing strategy rather than a variable one, your principal is protected from market loss. This creates a safer, more stable foundation for long-term income.
Growth Potential
Your money participates in market upside while being protected against downturns. This blend of growth and safety can help create more predictable long-term outcomes.
Fees and Value
Both annuities and investment accounts come with fees, but they serve different purposes.
Investment accounts generally charge ongoing management fees — but offer no guarantees.
Indexed annuities may include costs that support valuable benefits such as protection from market loss, guaranteed lifetime income, and potential death benefits.
When chosen correctly, these features can provide stability, predictability, and peace of mind — especially during uncertain market cycles.
Our goal is to help you build financial confidence that lasts a lifetime. Through proven, tax-advantaged strategies, we guide clients in growing and protecting their wealth with steady, long-term results.
Historically, these strategies have delivered consistent returns in the 5%–10% range annually — enabling every $1 million accumulated to generate $70,000 to $100,000 per year in tax-free income, all while preserving the principal.
Your retirement income should be reliable, sustainable, and built on a foundation that supports your lifestyle — not one that compromises your financial security.