A Balanced Look at Annuities
Like every financial tool, annuities offer powerful benefits alongside important considerations. Use this comparison to clarify where they shine—and where you'll want professional guidance.
Benefits that attract retirees
Insurance guarantees can keep your original premium intact even when markets fluctuate.
Turn retirement assets into a dependable paycheck that complements Social Security and pensions.
Optional benefits can increase payouts if you face a qualifying health event, helping cover care expenses.
Beneficiary features help you pass remaining value—or continued payments—to loved ones.
Earnings compound without current taxation, so more of your money stays invested until withdrawal.
Considerations to weigh carefully
Mortality and expense charges, administrative fees, and rider costs can reduce net returns if not managed carefully.
Early withdrawals often trigger penalties, so annuities work best with multi-year commitments.
Access to premiums is typically restricted beyond free-withdrawal amounts, which can be challenging if you need cash.
Fixed payouts may lose purchasing power unless you add cost-of-living adjustments or growth features.
Different carriers use unique crediting formulas and rider terms. Reviewing them with an advisor is essential.
Let's make sure the benefits win
Makonnen helps you evaluate costs, liquidity, and the income strategy so your annuity supports your lifestyle without surprises. Bring your statements or questions—we'll review them together.
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