How to Decide If an Annuity Fits Your Retirement Plan


Hi Reader,

If you’re planning for retirement and an annuity has been recommended to you, the hardest part may not be understanding how it works. It may be deciding whether it actually belongs in your retirement plan.

Asking better questions can help you understand what you’re considering before you commit.

"An annuity is not a retirement plan. It's just one possible tool in the toolbox that may help solve a particular retirement need."

ERIC BLAKE

How to Decide If an Annuity Fits Your Retirement Plan

In this episode, I explain how to evaluate whether an annuity fits within your retirement plan.

I walk through the questions I want you to ask about the retirement need you’re trying to address, other available options, what an annuity actually provides, what you may give up in return, how fees and surrender charges work, and what could happen if your circumstances change.

I also explain why reviewing the contract and understanding your free look period can give you time to make a more informed decision.

Key Takeaways:

  • Start by identifying the retirement need you want an annuity to address before evaluating the product itself.
  • Compare an annuity with other ways of accomplishing the same retirement goal before making your decision.
  • Understand exactly what the contract protects or provides, including income, principal, and access to money.
  • Review rider fees, commissions, advisory fees, and surrender charges so you know what you’re paying for.
  • Consider how changing health, family needs, or cash needs could affect whether the annuity still fits your plan.
  • And more!

You can catch every episode of The Simply Retirement Podcast on the website - or on your favorite podcast app.

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The Simply Retirement Toolbox

👉 Does An Annuity Fit Within My Financial Plan?​​

Securing a predictable income stream in retirement is likely one of your primary goals if you are approaching or already in retirement. With so many products and strategies available, it can be difficult to determine which approach best fits your unique financial situation.

Annuities can provide guaranteed income along with several other benefits that may support your retirement plan. Depending on your needs and circumstances, an annuity may help protect your initial investment, supplement your retirement income, provide tax-deferred growth, help address long-term care expenses, or support your legacy and wealth transfer goals.

Before deciding whether an annuity is right for you, it deserves careful consideration rather than being automatically dismissed or accepted. To help you evaluate whether an annuity fits within your retirement plan, we created this checklist. It covers several of the key factors you should consider, including:

  • Variable, fixed, and indexed annuities
  • Immediate and deferred income annuities
  • Purchase/funding methods
  • Riders and other features
  • Tax considerations

Have more questions about retirement planning? Just hit reply to this email. I read and respond to every message. 😃

Keeping Retirement Simple,

Eric Blake, CFP®

Retirement Is More Than Just a Math Problem.

Learn how our 3-step process can help you successfully navigate this decades-long transition—without overpaying the IRS!

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Content here is for illustrative purposes and general information only. It is not legal, tax, or individualized financial advice; nor is it a recommendation to buy, sell, or hold any specific security, or engage in any specific trading strategy.

All investing involves risk including loss of principal. Results will vary. Past performance is no indication of future results or success. Market conditions change continuously.

Information here is provided, in part, by third-party sources. These sources are generally deemed to be reliable; however, neither Blake Wealth Management nor RFG Advisory guarantee the accuracy of third-party sources. The views expressed here are those of Blake Wealth Management. They do not necessarily represent those of RFG Advisory, their employees, or their clients.

This commentary should not be regarded as a description of advisory services provided by Blake Wealth Management or RFG Advisory, or performance returns of any client. The views reflected in the commentary are subject to change at any time without notice.

Advisory services offered by Investment Advisory Representatives of RFG Advisory, LLC ("RFG Advisory" or "RFG") a registered investment advisor. Blake Wealth Management and RFG Advisory are unaffiliated entities. Advisory services are only offered to clients or prospective clients where RFG Advisory and its representatives are properly licensed or exempt from licensure. No advisory services may be rendered by RFG Advisory unless a client agreement is in place.

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