Annuities & Retirement Income
Fixed and fixed indexed annuities that turn savings into a guaranteed income.
What it is
An annuity is a contract with an insurance company. You pay in a lump sum or over time, and it grows at a guaranteed or index-linked rate before it pays you an income.
Guarantees depend on the financial strength of the insurance company that issues the annuity.
Your options
Fixed annuity
A guaranteed rate for a set number of years, a little like a CD from an insurance company.
Best for: certainty
Fixed indexed annuity
Growth linked to a market index, with your principal protected from market losses.
Best for: growth without market risk
Income annuity
Turns a lump sum into a regular income, for a set period or for life.
Best for: a paycheck in retirement
Moving an old 401(k)
When you leave a job, you can usually move your 401(k) into an IRA. Some people use part of it to buy an annuity for a guaranteed income in retirement.
Princess explains how that works, what it costs and what you give up, so you can decide. She works with fixed and fixed indexed annuities and doesn't give advice on stocks or funds.
Questions
Can I take money out early?
Most annuities let you take some out each year. Taking more in the early years usually means a surrender charge, so Princess shows you those terms before you sign.
Is my money safe?
Guarantees are backed by the insurance company, so its financial strength matters. Princess works with established carriers.
Are there taxes?
Growth is usually tax deferred until you take it out. Speak to a tax adviser about your own situation.
Which carriers does Princess work with?
For annuities, National Life Group, among others she can compare.
Plan the income you'll live on
Princess will explain your options plainly, with every charge on the table.