A Balanced Look at Annuities

Like every financial tool, annuities have clear strengths and clear tradeoffs. Use this page to see where they can help and where you may want more guidance.

Benefits that attract retirees

Principal protection

Some annuities can protect your original premium even when markets get rough.

Steady income

They can turn retirement assets into a dependable paycheck that works alongside Social Security and pensions.

Help with future care costs

Some annuities can support a broader plan for future health or care expenses.

Legacy benefits

Beneficiary features can help you pass remaining value or continued payments to loved ones.

Tax-deferred growth

Earnings can grow without current taxes, so more of your money stays invested until withdrawal.

Considerations to weigh carefully

Fees

Some annuities come with ongoing fees or optional feature costs that can lower returns.

Surrender schedules

Taking money out early can trigger penalties, so annuities usually work best when you can leave money in place for a while.

Limited liquidity

You may not be able to access all of your money right away if an emergency comes up.

Inflation pressure

Fixed payments can buy less over time if inflation rises.

Fine print

Each carrier uses different contract rules, so it is important to compare the details carefully.

Let's make sure the benefits win

Makonnen helps you look at costs, access to your money, and income options so there are fewer surprises later. Bring your statements or questions, and he'll review them with you.

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