Annuity Strategy
Annuity Strategy for Retirement Income
Annuities are often misunderstood because they are discussed as products instead of planning tools.
The better question is not, "Is an annuity good or bad?" The better question is, "What job does this annuity need to perform inside the overall retirement income plan?" Secured Financial helps clients evaluate where annuities may fit within retirement income, principal protection, tax deferral, liquidity, and legacy planning.
Annuities Should Be Assigned a Specific Job
An annuity may be used for different reasons depending on the client's goals: income predictability, principal protection, tax deferral, market timing risk reduction, or survivor income. Each objective requires a different evaluation.
Types of Annuity Strategies
- Fixed annuities
- Multi-year guaranteed annuities
- Fixed indexed annuities
- Immediate income annuities
- Deferred income annuities
- Income rider strategies
- Qualified and non-qualified annuity planning
How Annuity Strategies Should Be Evaluated
- Client age and time horizon
- Income need
- Liquidity need
- Surrender schedule
- Carrier strength
- Guarantees
- Fees and charges
- Tax treatment
- Beneficiary design
- Inflation considerations
Common Annuity Planning Mistakes
- Buying based only on headline rates
- Ignoring surrender periods
- Confusing income value with account value
- Using annuities without a liquidity plan
- Overallocating assets to illiquid contracts
- Ignoring tax treatment
- Failing to review carrier strength and renewal behavior
- Comparing unlike products as if they are the same
Plate · Questions
Frequently Asked Questions
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For clients who want to evaluate whether annuity strategies belong inside their broader retirement income and liquidity plan.