An annuity is guaranteed lifetime income that reduces the likelihood that you’ll run out of money in retirement. Income from an annuity is predictable, steady, and cannot be outlived. This Annuities 101 article provides an overview of annuities and links to resources that will help you decide if an annuity is right for you.
An annuity is a way to turn your savings into guaranteed income you can’t outlive, no matter what happens in the market or how long you live. But, like everything else, there are the good and the bad. Learn how to tell the difference.
A classic, good annuity is one that provides guaranteed income for as long as you live. It’s a way to diversify your portfolio, and make sure that your basic retirement expenses will be covered. But beware of market-based annuities that promise too much and don't deliver good value.
At Blueprint Income, we're working to make the annuity market a simpler and easier space to navigate. Each day we're focused on offering a better service and product that makes sense for you.
There are two things you need to know if you’re an annuity owner or considering a purchase if you want to understand whether you can lose money. First, what kind of annuity do you own or are you considering purchasing? Second, what is the financial strength rating of the insurer?
If you're thinking about an annuity purchase, keep these 9 things in mind when evaluating the financial strength of the annuity issuer.
The beneficiary to an annuity acquires rights upon the death of the owner. In most cases, the beneficiary will receive a lump sum cash refund of the contract, although, with certain annuity contracts, the beneficiary can take over the policy as the owner for the remainder of the term. Annuities typically avoid the probate process … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
The best annuity depends on your goals. If you’re looking for a pension-like monthly income stream for life, an income annuity is likely the best fit. If you’re looking for a CD-like guaranteed return for a set number of years, a fixed annuity is likely the best fit. If you’re looking for something that changes … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
You should not buy an annuity if Social Security or pension benefits cover all of your regular expenses, you’re in below average health, or you are seeking high risk in your investments. Take our quiz here to decide if an annuity makes sense for you. If you’re interested in reading more, here are several articles … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
You should consider investing in an annuity if you’re saving for retirement, consider yourself to be a moderate to conservative risk investor, and are interested in guaranteed income or growth. If, on the other hand, you’re looking to access funds for a near-term purchase, only want to invest in higher risk/higher return potential assets, an … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
Fixed income annuities are a good investment for those looking for guaranteed lifetime income in retirement. An income annuity is a lifetime income guarantee (typically paid monthly for the rest of your life) that you purchase from an insurance company as a way to reduce the risk that you run out of money in retirement. … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
Fixed annuities are a good investment for those looking for a safe, tax-advantaged way to earn a guaranteed return on retirement savings needed in the near future (3 to 10 years). Fixed annuities operate very similarly to CDs. Both vehicles offer a safe way to save money, crediting higher interest rates than those available through … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
Whether you can take your annuity as a lump sum depends on the kind of annuity you purchase, as well as when the annuity was purchased. The following annuities offer the ability to take a lump sum: Fixed annuities Variable annuities Indexed annuities However, if you purchased the annuity within the last few years, you … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
An annuity is a good investment for those looking for guaranteed income or guaranteed growth of their retirement savings that is safe from market volatility. An annuity is generally not a good investment for those who need near-term access to their money and is generally not a good investment for those looking for higher risk … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
Yes, there are good annuities out there, but it’s important to do your research to make sure you get one of them. Originally annuities only existed to provide a pure guarantee, whether guaranteed income or a guaranteed return. Over time, a few different types of annuities have been created with different value propositions, demoting the … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
In order to decide whether or not to annuitize your annuity, you need to be clear about your goals for the annuity and how you expect to use in the future. You also need to understand how your current annuity works, whether the income amount is guaranteed, and how much your benefit has earned in … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
You should consider putting your money in an annuity if you’re saving for retirement, consider yourself to be a moderate to conservative risk investor, and are interested in guaranteed income or growth. If, on the other hand, you’re looking to access funds for a near-term purchase, only want to invest in higher risk/higher return potential … <a href="https://www.blueprintincome.com/resources/annuity-basics/can-you-lose-money-in-an-annuity-know-these-two-things-to-figure-it-out/">Continued</a>
A summary of rate lock procedures for income annuities and fixed annuities.
Not all annuity website are created equal. Do your homework.
Not all insurance agents are created equal. Be leery of those who think of your financial life as an opportunity to sell you something.
Should you hate annuities? Yes, some types. Others? No, not if you believe the federal government, trusted academics or Ken Fisher himself.
There are warning signs building that the 8-10% average market returns we’ve experienced over the last decade likely are not here to stay. The guaranteed 4%+ growth of most top-paying fixed annuities are starting to look more attractive.
Annuity rates didn’t really budge in August. But given the declines in bond yields, that’s actually a good thing and means that annuity pricing might soon decline. If you’re thinking about making an annuity purchase before the end of the year, now is an attractive time to do it.
If one's goal is to avoid running out of money in retirement while leaving the largest possible legacy behind at death, then income annuities play a crucial role. In Blueprint Income's recent white paper, we demonstrate that portfolios made up of just stocks and annuities produce the best outcomes.
A flattening yield curve (one where the difference between short-term and long-term Treasury yields is smaller than usual) suggests two annuity buying strategies. Either buy a fixed rate annuity now, and wait for rates to rise before buying an income annuity. Or, start buying income now but do so in small pieces over time.
Inflation risk in retirement captures the possibility that the prices of goods will increase beyond what your retirement income and savings can handle. Annuities do not do a good job protecting you from that risk, and instead are built to protect you from the other two big risks: market risk and longevity risk.
The Federal Reserve recently raised short term interest rates by 0.25%, but how does this impact annuity payouts? Learn what factors, in addition to changes in interest rates, can affect your annuity payout.
An annuity is a lifetime income guarantee that you purchase from an insurance company, who is overseen by state-based guaranty funds that insurers your annuity purchases. In this article, we discuss this important protection, as well as provide some helpful resources that you should be aware of.
An annuity is guaranteed lifetime income that reduces the likelihood that you’ll run out of money in retirement. Income from an annuity is predictable, steady, and cannot be outlived. This Annuities 101 article provides an overview of annuities and links to resources that will help you decide if an annuity is right for you.
To make the process of buying an annuity as seamless as possible, prepare to go through the following steps and be familiar with the following terminology. In addition to providing free, real-time annuity quotes, Blueprint Income will take care of the rest of the annuity buying process for you.
An income annuity isn’t a good fit for everyone. Use the following strategies if an annuity isn’t the best fit for your retirement saving plan.
Qualified and non-qualified income annuities have differing tax treatment, meaning that once your retirement income has begun you will receive different tax forms reporting the amount of income generated from your qualified or non-qualified annuity. Here are the tax forms for your annuity and when you can expect to receive them.
Increasing annuity rates, usually driven by long-term Treasury bonds and investment-grade corporate bond yields, have caused buyers to question whether the trend will continue and how that affects their plan to purchase an annuity. While it's challenging to predict future long-term interest rates, there are strategies to mitigate interest rate risk.