Joseph Insurance BrokerWe Medi Care
An annuity is a contract between you and an insurance company. You make a lump-sum payment or series of payments, and in return, the insurer provides regular disbursements beginning immediately or at a future date.
Earn a guaranteed interest rate — similar to a bank CD but with tax deferral benefits. Predictable, stable growth with no market exposure. Best for conservative savers who prioritize safety.
Growth is linked to a stock market index (like the S&P 500) with a 0% floor — you never lose money due to market declines. Caps limit your upside but provide principal protection. Very popular for pre-retirees seeking growth without market risk.
Invested in sub-accounts similar to mutual funds. Higher growth potential — and higher risk. Value can decrease. Often comes with optional living benefit riders that guarantee a minimum income regardless of investment performance.
You pay a lump sum and begin receiving income payments almost immediately. Perfect for retirees who want to convert savings into guaranteed monthly income.
You contribute now and receive income starting at a future date (e.g., age 80). This insures against outliving your money in extreme longevity scenarios.
Accumulation Phase: You make contributions and money grows tax-deferred.
Distribution Phase: You begin receiving payments — either as a lump sum, periodic withdrawals, or annuitized income stream.
Annuities are not right for everyone. They're most appropriate for people who: have maxed out other tax-advantaged accounts, want guaranteed lifetime income, have a conservative risk tolerance, and won't need the funds for several years.
Peter provides an unbiased analysis of whether an annuity makes sense for your specific retirement picture — at no charge.