Which Type of Annuity Fits Your Retirement Plan? (Ep. 116 | Pt. 2)

When people hear the word annuity, they often picture a stream of retirement income. While that’s certainly part of the story, there are important decisions that come long before those payments ever begin.

How do the different types of annuities work? Which one might fit your retirement goals? And what questions should you answer before comparing products?

In this episode, I continue our annuity series by explaining the different types of annuities and how each one is designed to solve a different retirement planning challenge. I clarify the difference between an annuity as a financial concept and an annuity as a financial product, explain how immediate, deferred, fixed, fixed indexed, and variable annuities work, and return to one guiding question that can bring greater clarity to every retirement decision: What are you trying to accomplish?

Key takeaways

How viewing annuities as financial products changes the decisions involved before purchasing one

Why immediate and deferred income annuities serve different retirement income objectives

How fixed indexed annuities balance market participation with protection from direct market losses

Why variable annuities may appeal to investors seeking tax-deferred growth opportunities

How identifying your retirement goal first helps narrow the annuity choices that may fit your plan

And more!

Resources:

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