3 things that make annuities unique

No matter your age, we all think about retirement and the options we have for funding it. There are many options to consider but annuities can offer 3 things that make them unique retirement assets.


1- Annuities can guarantee reliable lifetime income

Annuities are unique in that they can provide you with guaranteed income for life, no matter how long you live and how the stock market performs. These guarantees are provided by insurance companies with strict oversight by the states.

Another way to think of this is that annuities offer you longevity insurance  – insurance to protect you from outliving your money.


2- Annuities can provide protection of your principal from loss

Another unique aspect of annuities is that they can be structured to provide a return to you in years where the stock indexes are up, but protect your principal during the down years.  While you will typically not share in 100% of the upside in years where the markets are up, you will not suffer any of the losses in the down years.

For example, if the indexes were down 20% in one year, the value of your stock investment account might be down 20%. With an annuity, the credit to your account would be 0%.  We like to call this “Zero is my hero.”

3- Annuities can provide protection from inflation

A stock portfolio can only protect you from inflation if it rises more than the rate of inflation. In years when the stock market is down, you face a double whammy!  The drop in the value of the account hits your account value and then the distribution you take for living expenses hits it again. Subsequent gains will provide less actual growth because you are now working off of a lower base.

There are annuities that can provide an inflation rider to increase your distribution every year based on the inflation rate. Typically, there are limits and other considerations on this feature so make sure you work with someone who can explain all of your options to you.

Want to know more?

"Education is the key to making informed financial decisions." -- Elliot Goldberg, Independent Registered Investment Advisor (610) 999-3599
“Education is the key to making informed financial decisions.” — Elliot Goldberg

Please call me at (610) 999-3599 or click here for more information on annuities.


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