You saved for decades. Now it has to last.
The hardest problem in retirement isn't accumulating money — it's converting it into income you can count on for an unknown number of years. Annuities are one tool for that, with real trade-offs worth understanding before you commit.
- Fixed and fixed index annuities from multiple insurance companies
- Straight talk about surrender periods and liquidity limits
- Coordinated with Social Security timing and your other income
See your options in about 2 minutes
Three questions to start. No medical questions, no obligation, and nothing shared with anyone outside our agency.
This is usually worth a conversation if…
- You're within about ten years of retirement, or already retired.
- You have money sitting in accounts you don't intend to touch for several years.
- You have an old 401(k) or an IRA and no clear plan for turning it into income.
- The idea of a market drop right after you retire genuinely worries you.
- You want a portion of your income to arrive regardless of what markets do.
Not sure this is the right fit?
That's a normal place to start. A short call with a licensed agent will tell you whether this makes sense for your situation — and we'll say so plainly if it doesn't.
The kinds of annuities we work with
An annuity is a contract with an insurance company. You give the company money; the company makes a defined set of promises in return. Which promises you're buying is the whole question.
Fixed annuities
The insurance company credits a stated interest rate for a stated period. It's the most predictable structure — you know what you'll earn and when the surrender period ends. Fixed annuities are commonly compared to bank certificates of deposit, but they are not bank products, are not FDIC insured, and their guarantees rest on the insurance company rather than on federal deposit insurance.
Fixed index annuities
Interest is credited using a formula tied to an external index, subject to a cap, participation rate, or spread, with a floor that prevents a negative index credit. You are not invested in the index. In exchange for downside protection on index credits, your upside is limited by the crediting formula, and those formula components are usually subject to change by the insurer after the initial period.
Income riders
Many index and fixed annuities offer optional riders, at additional cost, that provide a guaranteed lifetime withdrawal benefit — a stream of payments for life even if the account value is exhausted. These riders have their own crediting formulas, fee structures, and rules about when payments can begin and how much can be withdrawn. The rider's benefit base is generally an accounting value used to calculate income and is not the same as the account value you can walk away with.
Surrender charges and liquidity
Nearly every deferred annuity carries a surrender period — commonly five to ten years, sometimes longer — during which withdrawals above a stated free-withdrawal amount incur a surrender charge, and in some contracts a market value adjustment. This is the single most important thing to understand before signing. Money you might need in the next several years generally does not belong in a deferred annuity.
How it fits with everything else
An annuity is one component, not a plan. The useful conversation covers when you claim Social Security, what your guaranteed income covers versus what your discretionary spending requires, what you keep liquid for emergencies, and what you want to leave behind. We start there, and sometimes the honest conclusion is that you don't need an annuity at all.
What to expect on cost
Fixed and fixed index annuities typically have no explicit annual fee on the base contract; the insurance company's compensation is built into the crediting rates it offers. Optional riders — most commonly guaranteed lifetime income riders — carry an explicit annual charge deducted from the contract, and that charge continues whether or not index credits are earned in a given year. Any recommendation we make will state the rider charges in writing.
Important disclosures
Annuities are insurance contracts issued by an insurance company. They are not bank products, are not deposits, are not FDIC or NCUA insured, and are not guaranteed by any bank or government agency. Guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company. Fixed index annuities do not directly participate in any stock or equity investment; index credits are calculated by formula and are limited by caps, participation rates, or spreads that the insurer may change after the initial period. Withdrawals in excess of the contract's free withdrawal amount during the surrender period are subject to surrender charges and may be subject to a market value adjustment. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken before age 59½, may be subject to an additional 10% federal tax. Optional riders are available at additional cost and have their own terms, limitations, and eligibility requirements. Product features and availability vary by state. Neither Elavere Life & Retirement nor its producers provide tax, legal, or investment advisory services; consult a qualified professional regarding your circumstances.
Frequently asked questions
Is an annuity safe?
What happens if I need my money early?
Can I lose money in a fixed index annuity?
How is this taxed?
Do I have to annuitize?
Let's find out what this actually costs you.
A short conversation with a licensed agent — in English or Spanish — and you'll know your real options. No cost, no obligation, no pressure.
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