Annuities are an insurance product that guarantee income. Explore the pros and cons of lifetime annuities, the best kinds, and more.

When you purchase an annuity, you trade a fixed sum of money for a monthly paycheck for a predetermined period of time or for your remaining lifetime (no matter how long that might be).

Longevity is one of the risks that annuities protect you from. Inflation, stock market risk, long term care costs, and more are some of the other risks that can be covered by annuities.

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What Is an Annuity? Hype or Hope for Your Retirement?

What is an annuity? An annuity is technically an insurance product, not an investment.  Instead of trading money for financial protection from fire, flood or a health emergency, you are trading a lump sum in exchange for guaranteed income payments. The insurance company is taking the risk for downside in financial markets and for you…

September 7, 2022

Avoid These 7 Big Annuity Mistakes

Considering an annuity? Don’t make any of these 7 big annuity mistakes. These errors in judgement are common, but easy to avoid.

September 7, 2022

The Real Scoop on Lifetime Annuities: Is This Type of Insurance Right for You?

Explore 8 questions to determine if a lifetime annuity is right for you – your values, goals, and resources.

September 6, 2022
should I buy an annuity

Should I Purchase an Annuity? Explore the Pros and Cons

Depending on who you talk to, you’ll get very different answers to the question, “Should I purchase an annuity?” In fact, in the right circumstances, there are some great reasons to buy an annuity. However, there are also significant reasons to walk away. The truth of course depends on your own goals, values, attitudes, and…

May 18, 2021

Longevity Annuities: Are They the Answer for Your Worst Retirement Fears?

What is it that you fear most about retirement? Do you worry about running out of money? Are you concerned that you might need long term care and won’t be able to afford the costs and that you will become a burden on your family? If you answered yes to either or both of those…

April 5, 2021
pros and cons of annuities

The Pros and Cons of Annuities: How to Evaluate Annuities for Your Retirement

If you are worried about paying for retirement, it is worth evaluating the pros and cons of annuities. The Big Takeaways…   Annuities are a great way to provide guaranteed lifetime income in retirement while hedging against inflation and other financial woes. Though less risky, annuities generally yield lower returns than other investment products, and…

September 15, 2020
real scoop about annuities

The Real Scoop on Lifetime Annuities

Annuities have a strange reputation. Some people think they are a great way to guarantee income in retirement. Other people think of them as a bad investment. So what’s the real scoop on lifetime annuities? Forget everything that you might have heard about lifetime annuities: they’re great, they’re dangerous, they’re safe, or you could lose…

July 2, 2020
Buying an annuity

7 Signs Buying an Annuity Makes Sense for You

Prepared for properly, retirement can be a time when well-laid plans come to fruition, providing the financial foundation for a lifestyle of comfort and leisure. If those are your goals for the next phase of life, you may want to consider if an annuity should be part of your plan. An annuity may provide a…

July 1, 2020

What a Lifetime Annuity Is and How It Works

It is likely that you have heard of annuities. In fact, if you are already preparing and planning for retirement, you may even have one. But, you may be fuzzy on the details of what exactly a lifetime income annuity is and how it works. Estimate how much income your savings can generate using an…

June 30, 2020
Pros and cons of annuities

Suze Orman Talks Annuities Pros and Cons

When it comes to investing, there is no right answer for everyone. Financial guru Suze Orman warns those saving for retirement that taking action based on finance myths can get you into trouble when reality sets in. As the economic climate begins to change, so will the way that people need to save for retirement.…

June 29, 2020

Is a Tax Sheltered 403(b) Annuity a Good Investment?

If you are an employee at a school, church, hospital, or other non-profit, then you are eligible for a “tax-sheltered annuity,” also known as a 403(b) plan. Don’t work for a nonprofit? Learn more about annuities and how to invest in them in a tax-advantaged way. History Of the 403(b) and Tax Sheltered Annuities The…

June 28, 2020

5 Mistakes To Avoid When Shopping for Annuities

Annuities can be a great way to receive a steady income in retirement, but because they are complex financial products, it’s best to do some research before purchasing one. Here are five annuity mistakes to avoid. Estimate how much income your savings can generate using an Annuity Calculator. 1. Investing Too Much Money When Purchasing…

June 27, 2020

The Best Annuities: What to Look For and Why to Buy Them

While investing a big portion of your retirement savings in the stock market can be a risky decision, putting some of that money into an annuity can help ensure you have a steady flow of income for life. There are downsides, but they can be a powerful tool for financial security in retirement – especially…

June 27, 2020

Podcast: Glen Nakamoto — Building a Retirement Paycheck

Episode 41 of the NewRetirement podcast is an interview with Glen Nakamoto — retired cyber security analyst and financial planning enthusiast. They discuss how Glen built his own lifetime retirement paycheck with a guaranteed income floor using immediate annuities. Glen outlines how he built his plan and paycheck. Listen Now: Don’t miss out on future…

May 28, 2020

Will Pensions Make a Comeback? (Should You Make Your Own?)

Most people categorize pensions in the same bucket as eight-track tape players, rotary phones, oversized shoulder pads and cathode-ray tube TVs — out of date.  But, pensions just might become the latest retro craze — especially those you can create for yourself! NOTE: If you are lucky enough to have a pension, the NewRetirement Planner…

May 28, 2020
Using an income floor for financial freedom

Building a Retirement Paycheck Through Retirement Income Planning

This deep dive into the concept of using an income floor to establish a three bucket plan for retirement income needs comes from Glen Nakamoto. First of all, just to make clear, I am not a financial advisor or anyone who has any background in financial planning. Before I retired, I was a cybersecurity analyst…

May 11, 2020
Rolling Stones Annuities

Gimme Shelter: Why Are the Rolling Stones Hawking Annuities?

The sole sponsor for the Rolling Stones’ US Tour 2019 is the Alliance for Lifetime Income, an advocacy organization whose purpose is to help Americans address the risk of outliving their retirement income. No drugs, sex, cars or even fashion — annuities. Why Annuities? It may seem a surprising choice of sponsor for The Stones…

July 9, 2019
compare annuities

How to Compare Annuity Plans: Choosing the Right Annuity for You

Annuities can be a tricky purchase. You need to compare annuity plans to find the right option for you.  But, there are many different products – fixed annuities, variable annuities, tax-deferred annuities, guaranteed annuities, inherited annuities, equity indexed annuities and more. How do you even begin to go about comparing annuities? Estimate how much income…

February 25, 2019

Qualified Longevity Annuities Contract: QLAC Pros and Cons

Annuities are certainly not the only solution to being financially prepared for retirement. However, they are a financial strategy you should be aware of.  In fact, research has shown that a version of an annuity, a Qualified Longevity Annuity Contract (QLAC), can boost your retirement readiness. This article explores QLAC pros and cons. They are…

October 18, 2018
Retirement Income Streams

5 Tips for Creating Retirement Income Streams

Americans are living longer than ever. That’s mostly great news for older adults.  You now have more opportunities to enjoy family and enrich your community. However, we are all concerned about outliving our money.  Having retirement income streams to meet expenses for as long as you live is a significant concern. Retirement income streams: Not…

July 26, 2016
fixed income annuity

Fixed Income Annuity: Solve 3 Big Problems with 1 Investment

Fixed income annuities can have many key benefits for retirees.  Of all the challenges we face in preparing financially for retirement — creating a steady income stream, gaining tax leverage, and reducing risk of losing money — are at the top of the list.And, the promise of fixed income annuities – an investment tool that…

May 24, 2016
annuity definition

What Is an Annuity? Hype or Hope for Your Retirement?

What is an annuity? An annuity is technically an insurance product — not an investment.  Instead of trading money for financial protection from fire, flood or a health emergency, you are trading a lump sum in exchange for guaranteed income payments.The insurance company is taking the risk for downside in financial markets and — in…

May 23, 2016
Retirement income

Can Annuities Provide Enough Money for You to Live Securely in Retirement?

Annuities often get a bad rap, but maybe that’s not entirely fair. While some advisers love them, just as many (and probably more) warn against them. But there are a lot more options than there used to be, and more ways for you to find a policy that suits your plans. As a general rule…

March 16, 2016
fixed annuity

Are Fixed Annuities a Good Fix for Your Retirement Plan?

It appears that more consumers are turning to fixed annuities as a source of income in retirement, and demand for the product doesn’t seem likely to slow any time soon. Can a fixed annuity fix your retirement plan? When you buy an annuity, you are exchanging a lump sum of money for an agreed upon…

January 18, 2016

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