Annuity Basics & The 4 Most Common Types of Annuities

I am a firm believer that annuities as a whole can do things no other financial product can do. They bring certainties to an uncertain financial plan and investment portfolio. However, choosing the wrong annuity can turn out to be a huge mistake. With so much confusion surrounding annuities, I decided to put together a video tackling annuity basics and the 4 most common types of annuities in the marketplace today:

Fixed Annuities
Fixed Indexed Annuity
Variable Annuities
Single Premium Immediate Annuities

Here’s the way I see it, one of the biggest challenges many face in retirement is not having enough predictable monthly income to cover expenses or meet their desired cash flow. When retirement income doesn’t meet our monthly expenses, we typically proceed to draw down other assets that are intended for long-term growth. Annuities that provide lifetime income streams like SPIAs, or FIAs and VAs via income riders, give the contract owner the ability to pensionize a lump sum in order to help cover any potential income gaps as they retire. In my opinion, income annuities are great assets, and one of the best ways to address longevity risk.

When it comes to annuities, you have the flexibility to tailor a plan that meets your individual needs. Ultimately, the appropriateness of annuities is dependent upon your circumstances, financial goals, time horizon, tax situation, and the purpose of the money you are considering placing into an annuity. Know what you want, become educated on the details, and then balance the logical sides of the decision. With a variety of optional payout methods, you have the flexibility to choose a plan that fits your retirement needs.

Investment Advisory Services offered through Bravias Capital Group, LLC ("BCG"), a New Jersey State Registered Investment Advisor. Bravias Capital Group, LLC and Bravias Financial are independent entities. This video is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company. Variable insurance and annuity product are considered securities products and require one to have proper FINRA registrations, in addition to proper state insurance licensing, prior to selling or discussing such products. Insurance products and services are offered through individually licensed and appointed agents in various jurisdictions. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products and do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims-paying ability of the issuing company. While we believe the information in this report is reliable, we cannot guarantee its accuracy. Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining markets. The indices mentioned are unmanaged and cannot be invested into directly. Past performance does not guarantee future results.