Have you noticed ads for annuities showing up in your area or online? Are you thinking of using an annuity as a tool in your retirement portfolio? How do you know if purchasing an annuity is the right decision for you and your family? 

When interest rates are low, it usually means that annuities become a popular commodity that people try to sell. The real money for the insurance agencies comes when they don’t have to pay out the full amount of benefits when an annuity holder passes away. 

To help you make the most of your finances as you plan for, enter, and enjoy retirement - I’ve come up with a helpful overview of how annuities work and how you can use them to their maximum potential. You don’t want to miss a minute of this episode! 

<>

You will want to hear this episode if you are interested in...

• What are the different types of annuities available? [1:40]
• The benefit of purchasing an annuity. [3:00]
• Understanding how a fixed annuity works.[6:00]
• How to use an indexed annuity. [9:15]
• Is a variable annuity right for you? [11:45]
• How death benefits and living benefits with annuities work. [15:30] 
• My take on using annuities wisely. [18:00]
• Closing thoughts [20:00]

Four types of annuities 

Let’s face it, most people don’t have an idea of what an annuity is or how it works. Even people who purchase an annuity find that they don't’ really understand how it works a year after they’ve purchased one! As you begin the process of investigating if an annuity is the right decision for you and your family - here an overview of the four common annuities. 

1. SIPA or a single premium immediate annuity is set up where you pay an insurance company a sum of money upfront and they promise to pay you a certain amount of money periodically (monthly, for instance) for the rest of your life.
2. A fixed annuity is where an insurance company promises to pay the buyer a specific, guaranteed interest rate on their contributions to the account. 
3. An indexed annuity or a fixed index annuity is a type of annuity whose income payments are tied to a stock index, such as the S&P 500. Indexed annuities perform well when the financial markets perform well.
4. A variable annuity is an option that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose. 

Which type of annuity are you the most familiar with? Are you ready to learn more about this important and helpful topic? Make sure to tune in to this episode as I expand on each of these types of annuities and so much more! 

Using annuity wisely 

What is my “Take” when it comes to annuities? I encourage the people that I serve to consider using a different approach when it comes to using annuities. I recommend looking into a withdrawal strategy that optimizes the use of annuities without looking up too much of your money for the long-run. You can learn more about my withdrawal strategies and how they work when it comes to using an annuity by listening to the second episode of this podcast linked in the resources section at the end of this post. 

Resources & People Mentioned

• Retire with Ryan Episode #2
• The Guyton Guardrail Strategy

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact