Is An Annuity Right for Me?

Theres been so much written about annuities its almost impossible to know what‘s right and what isn‘t. Like many things, sometimes the answer depends on who you ask. Insurance agents will almost certainly tell you that annuities are right for anyone anytime. Investment representatives might err on the side of parlaying the bulk of you portfolio into investments. The most prudent answer is to identify your stage of life, risk tolerance, and what your goals are. If you‘re nearing retirement (say 5 years out), and youre concerned about having a reliable and sustainable income throughout retirement and you dont like risking a large share of your portfolio in a potentially volatile market, then its probably wise to consider reallocating a portion of portfolio to Fixed Indexed Annuities. They de-risk your portfolio (limiting the downside), while providing a portion of guaranteed income in retirement. And they can offer moderate growth potential. They are also an alternative to bonds and because bond returns are woefully low, they are a good option to consider as a bond replacement.

Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company, not an outside entity. Investors are cautioned to carefully review an index annuity for its features, costs, risks, and how the variables are calculated.

Read our Guide to Fixed Index Annuities and let us know if you have any questions. We can perform a complimentary assessment to determine if an annuity is a solution for you to consider in your retirement portfolio. Email us at or give us a call at 508-798-5115 to schedule a call.