People use annuities to protect part of their savings from stock market drops, or to turn savings into a steady paycheck in retirement.
The main kinds
- Fixed annuities pay a set interest rate for a set number of years.
- Fixed indexed annuities earn interest tied to a market index, up to a limit. Market drops don't reduce your balance, though optional add-ons can carry fees.
- Income for life. Some annuities can pay you income for as long as you live, however long that is.
What to know before you buy
- Annuities are for money you won't need for several years. Taking out more than the allowed amount early usually means a surrender charge.
- Withdrawals before age 59½ may also owe an IRS penalty.
- Guarantees come from the insurance company that issues the annuity, so its financial strength matters.
We'll go through the surrender period, fees and terms with you before you decide, and we'll tell you if an annuity isn't the right fit.
Planning for retirement and Medicare at the same time? We can look at both in one visit. See our Open Enrollment guide.
Questions we hear
Is my money safe in an annuity?
An annuity's guarantees are backed by the insurance company that issues it, not by a bank or the FDIC. That's why we look at each company's financial strength with you.
Can I move my 401(k) or IRA into an annuity?
Often, yes, through a rollover or a direct transfer. We'll explain the surrender and tax details first, and you should confirm the tax side with your tax advisor.
What is a surrender charge?
A fee for taking out more than the allowed amount during the first years of the contract. The contract lists the schedule, and we'll walk through it with you.
How are you paid?
The insurance company pays us a commission. It isn't taken out of the money you put in.
Call us at (812) 527-2100 or request a call back, and one of our agents will get back to you.