Annuities

An annuity is a contract that turns savings into security.

In the simplest terms, you give an insurance company a sum of money, and in return it agrees to protect that money, grow it, pay you income, or some combination of the three. Here is how the main types work.

Protect and grow

Multi-Year Guaranteed Annuity (MYGA)

A fixed interest rate for a set number of years, similar in concept to a CD but issued by an insurance company instead of a bank.

Good fit when: You want a known rate and a known end date.
Keep in mind: Surrender charges apply if you withdraw more than the free amount before the term ends.

Growth with a floor

Fixed Indexed Annuity

Interest credits are tied to a market index, with a floor that protects your principal from market losses. Credits are limited by caps or participation rates.

Good fit when: You want some growth potential without exposure to market loss.
Keep in mind: You will not receive the full market gain in strong years.

A paycheck for life

Income Annuity

Converts a lump sum into guaranteed income for life or for a set period, starting now (immediate) or at a date you choose (deferred).

Good fit when: You want income that works like a pension.
Keep in mind: You give up access to the lump sum in exchange for the income.

Plan for later income

Income Riders

Optional benefits added to some annuities that guarantee a future lifetime income amount, even if the account value runs low.

Good fit when: You are 5 to 10 years from retirement and want to lock in a future income floor.
Keep in mind: Riders usually carry an annual cost.

The honest part

What annuities are not.

Annuities are long-term products. They are not designed for money you may need in the next few years, and they are not the right fit for everyone. Most carry surrender charges for a period of years, and every guarantee depends on the strength of the insurance company behind it.

That is why every recommendation we make comes with the surrender schedule, the fees, and the carrier's financial rating in writing, before you sign anything. If an annuity is not right for you, we will say so.

Important information about annuities

Annuities are long-term insurance contracts designed for retirement. Withdrawals above the annual free amount during the surrender period may be subject to surrender charges and, in some contracts, a market value adjustment. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken before age 59 and a half, may be subject to a 10% federal tax penalty. Fixed indexed annuities are not securities and do not directly participate in any stock or equity investment or index; index credits are subject to caps, participation rates, or spreads that limit the interest credited. Optional riders are available for an additional annual fee. Product features and availability vary by carrier and state.

Greater Endeavors is an independent insurance agency. Insurance and annuity products are offered through licensed insurance professionals. They are not deposits of any bank, are not FDIC insured, and are not investment products. Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. Greater Endeavors does not provide investment, tax, or legal advice.

Let us look at your retirement together.

A free, no-pressure conversation with a licensed member of our team.

Book a Free Retirement Review