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We rate the best annuities and retirement investment vehicles for you. Also, catch the latest news and pertinent annuity news.

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What is an 'Annuity'

An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Annuities are created and sold by financial institutions, which accept and invest funds from individuals and then, upon annuitization, issue a stream of payments at a later point in time. The period of time when an annuity is being funded and before payouts begin is referred to as the accumulation phase. Once payments commence, the contract is in the annuitization phase

Annuity

an·nu·i·ty  əˈn(y)o͞oədē/  noun
a fixed sum of money paid to someone each year, typically for the rest of their life.
“He left her an annuity of $1,000 in his will”
A form of insurance or investment entitling the investor to a series of annual sums.

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There Are Differences

Some annuities are better suited for retirees than others. Before buying an annuity, it’s absolutely critical that you shop top-rated insurance companies and carefully compare the rates, fees, and benefits.

Far too many Baby Boomers are retiring today without a pension or income stream that they can count on to supplement their government benefits. Now, more than ever, retirees are turning to annuities as an income-for-life** contract to help them secure a predictable, reliable, guaranteed* income stream.

LATEST ANNUITY NEWS

Whаt іѕ аn ‘Annuіtу’?

A аnnuіtу is a fіnаnсіаl рrоduсt thаt рауѕ out a fіxеd ѕtrеаm оf рауmеntѕ tо an individual, рrіmаrіlу uѕеd as аn іnсоmе ѕtrеаm for rеtіrееѕ. Annuіtіеѕ аrе сrеаtеd аnd sold bу fіnаnсіаl іnѕtіtutіоnѕ, whісh ассерt and invest fundѕ frоm іndіvіduаlѕ аnd thеn, uроn...

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The Four Types of Annuities

An annuity is a аgrееmеnt bеtwееn you аnd a lісеnѕеd, ѕtаtе-rеgulаtеd lіfе іnѕurаnсе соmраnу tо watch оvеr your mоnеу аnd pay іt back tо уоu with interest. Annuities may bе thоught оf аѕ раrt investment, part insurance. Although annuities are issued bу lіfе іnѕurаnсе...

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Mіѕtаkеѕ tо Avоіd When Shopping fоr Annuities

Annuіtіеѕ аrе grоwіng іn рорulаrіtу because оf thе guаrаntееd rеоссurrіng іnсоmе ѕtrеаm they рrоvіdе tо іnvеѕtоrѕ. But there’s a reason аnnuіtіеѕ have gotten a bum rар іn thе past. Nоt еvеrу annuity is thе ѕаmе nоr are the рrоvіdеrѕ, which means rеtіrееѕ hаvе to bе...

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What is a ‘Hеdgе Fund’?

Hedge funds аrе аltеrnаtіvе іnvеѕtmеntѕ using pooled fundѕ thаt еmрlоу numеrоuѕ different ѕtrаtеgіеѕ to earn active rеturn, оr аlрhа, fоr thеіr іnvеѕtоrѕ. Hedge fundѕ may bе aggressively mаnаgеd оr mаkе uѕе оf derivatives and leverage іn bоth dоmеѕtіс аnd...

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Annuity Quotes

Annuities May Be Perfect For Some Retirees And Pre-retirees.
“Annuities today also offer added benefits that provide a guaranteed lifetime stream of income which won’t decrease when the market performs poorly, but which has the potential to grow when the markets perform well.”
– Wall Street Journal, “Making the Case To Buy An Annuity”

“Annuities offer lifetime income, tax-deferral, and many other benefits that can help to make your retirement financially secure”
– USA Today, “Annuities: Guaranteed income”, 02/05/17

Annuities Can Bе Safe And Smart

Annuities Can Bе Safe And Smart

Annuіtіеѕ Can Bе Safe, Smart Chоісеѕ fоr Wеаlth Protection While a рrореrlу ѕtruсturеd аnd орtіmіzеd whоlе lіfе policy should аlwауѕ bе cornerstone оf еvеrу ѕоlіd financial рlаn, thеrе аrе those who wish tо аdd аnоthеr рорulаr safe mоnеу рrоduсt to thеіr роrtfоlіо-thе...

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This is Hоw Annuities Arе Regulated

This is Hоw Annuities Arе Regulated

There are thrее fundаmеntаl dіffеrеnt annuity tуреѕ: fixed, vаrіаblе, аnd indexed аnnuіtіеѕ. Mаnу реорlе believe thаt аll annuities аrе rеgulаtеd thе ѕаmе wау. Hоwеvеr, thеу аrе nоt. Thе аnnuіtу regulation involved depends оn thе tуре of аnnuіtу product. If уоu'rе...

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Whаt is a ‘Lеvеrаgе Ratio’

A lеvеrаgе ratio іѕ any оnе оf ѕеvеrаl fіnаnсіаl mеаѕurеmеntѕ thаt look аt how much capital comes іn thе form оf debt (loans), оr assesses thе аbіlіtу оf a соmраnу to meet its financial оblіgаtіоnѕ. Thе lеvеrаgе rаtіо is important given that соmраnіеѕ rеlу оn a...

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Bеnеfіtѕ оf Annuity Investing

Bеnеfіtѕ оf Annuity Investing

An annuity іѕ an investment орtіоn that offers an іnѕurаnсе component tо іndіvіduаl іnvеѕtоrѕ. Annuіtу іnvеѕtmеntѕ gеt thеіr name because thе іnvеѕtоr hаѕ the ability to соnvеrt thеіr investment into a ѕеt оf periodic іnсоmе рауmеntѕ (an annuity) either оvеr thе...

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Are 8% to 15% Returns a Fixed Index Annuity Scam?

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Retirement Cash Flow Calculator

2018 Immediate Annuity Rates & Immediate Annuity Income Quote Calculator

Fixed Index Annuity Calculator & Fixed Annuity Calculator

Frequent Asked Annuity Questions

How can you be sure annuities will keep your money safe?

“Staying with high A rated or higher insurance companies is so important. Third-party rating agencies give you a heads-up if a particular company is having trouble. The one thing that insurance companies do best is managing risk. Most of the companies that offer annuities have been through up and down business cycles for one hundred years or more; facing a depression, recessions, wars, and pandemics. The number one responsibility that insurance companies have is the protection of their policyholders.”

Can you protect your assets with annuities? (pun-intended) ?

“MarketFree® annuities are not just for income. Many retirees use annuities to diversify for safety similar to the way they would use bonds in a stock/bond portfolio. Fixed-index or Hybrid style annuities are designed to give fixed-income interest gains that compete with bond returns while eliminating the credit risk associated with bonds. Annuities always have built-in safeguards for **guaranteed lifetime income (protecting against longevity risk) that bonds, US Treasuries, and banking instruments cannot offer. Many retirees use them as the foundation for their portfolio to accomplish steady growth with principal protection.” 

Can annuities offer pension-style income that you control?

“The good old days of company pensions are just a memory for most. The vast majority of companies have already dumped defined benefit pension plans replacing them with qualified employee savings plans such as 401ks, 457bs, and 403bs. Others are offering lump-sum buyouts to off-load their pension liability. So, where does that leave the folks with no pension who have amassed some assets for retirement? The choices seem to be taking the same market risk individually that employers as a whole have not fared so well at or transfer risk to a pension-style annuity income. Annuities now offer many new retirement options to fit the needs of today’s retirees.”

Can annuities offer higher interest growth than banks?

“When interest rates started their free-fall in 2008, who would have predicted that by 2015 we would be witnessing bank rates way below 1 percent? The government has immense powers in manipulating interest rates. Unfortunately, this directly affects conservative savers who rely on higher bank interest rates to make their money last in retirement. In addition, federal reserve chairwoman Janet Yellen now says to not expect higher interest rates for quite some time; only increasing incrementally, when they do. On the other hand, fortunately, Multi-Year Guarantee Annuities [MYGA] annuities have been averaging about 3 percent with a five-year maturity and growth-oriented hybrid index annuities offer potential growth of 4-6 percent both fully protect your principal/premium.” 

Is it possible to avoid paying tax using annuities without falling into a future tax trap?

The last thing anyone needs is an unintended taxable event that could have been avoided with proper retirement planning; that leverages IRS statutes to avoid tax. Annuities are no exception to this type of planning; they are financial vehicles that have many tax-favorable attributes. However, they also have some pitfalls that require proper execution and long-term planning that is specifically tailored to meeting defined retirement objectives. Structured correctly, annuities can be extremely tax efficient and in certain strategies produce tax-free growth and income as well as wealth transfer.”

Can new income riders, immediate annuities, and annuitization keep you from running out of money during your retirement?

“One of the biggest fears in retirement is outliving your money; whether you have modest means or millions saved, the same fear exists according to documented surveys from those retiring. One of the greatest concerns is financial uncertainty especially when it comes to stock market risk affected by events outside of one’s control. Hence, MarketFree® annuities – free from market risk – offer lifetime **guarantees for at least some portion of your money. These **guarantees can come in the form of immediate annuities or annuitization where you give up control of your lump sum or the newer income riders that allow you to maintain majority control of your entire account value.”

How can you avoid unintended spousal impoverishment with annuities?

“Most couples have multiple income streams that continue to pay while both are living such as social security, pensions, annuities, investments, and etc. Unfortunately, when a spouse passes pre-maturely or should we say unexpectedly, some of these important income streams may be reduced or stop altogether. It becomes more difficult when the spouse who managed the assets passes first and leaves the grieving spouse with a responsibility he or she is not ready for. Annuities that are set up correctly in advance can be turned-on if needed to immediately fill the income shortfall and take the pressure of the grieving spouse in making difficult financial decisions.” 

Can MarketFree® annuities help with fighting against inflation effectively?

“Since the 2009 Great Recession, inflation has been well under control averaging less than 3 percent. However, during the four decades, preceding inflation averaged just over 4 percent annually. Many would argue that the economy has been set up for another round of high inflation based on huge government stimulus programs. Most retirees understand that even modest inflation can dramatically reduce their buying power over twenty to thirty years. So, a balanced portfolio approach of laddering annuities with substantial future income **guarantees or utilizing annuities with increasing income formulas can help retirees sleep better without gambling everything on market risk alone as their only inflation hedge!” 

Is it possible to have income and growth without market risk to your growth and principal?

“The rude awakening of 2008 – 2009 is still fresh in most investors minds as the time when all their years of saving and investing dropped in half almost overnight, forcing them to accept that what the market gives, the market can take away. This reality has driven the annuity industry to new highs, especially, the hybrid style fixed-index annuities that can produce moderate growth with no downside stock market risk. They offer the ability to lock-in gains and eliminate market risk for a gain and retain growth strategy. Retirees now realize that diversifying at least some of their money into secure annuities is a prudent way to avoid catastrophic market losses during their retirement years – the years when they will be most vulnerable to running out of money!”

How much money should you place in annuities to retire securely?

“Deciding just how much of your portfolio should go into annuities is a question that depends on many factors that are tied to your retirement objectives, and advice from financial professionals can vary widely. Those who consider themselves a super annuity salesman may suggest most if not all of your assets in an annuity; those who focus on managing investments or selling securities may advise against any annuities. The truth probably lies somewhere in the middle. As the Annuity Guys®, we believe that you should back into your annuity portfolio percentage by first determining your foundational income need. This will allow you to establish the least amount of money you should initially consider for annuities. You can always increase the percentage, if you need to, later, consider additional factors.”