A Clear Look at Annuities: An Option for Your Retirement

For many people, a key retirement goal is to create a reliable stream of income that they cannot outlive. Annuities are one of the financial tools available that can help with this goal. Annuities are a contract between you and an insurance company, where you exchange a lump sum of money for a series of payments in the future.

At Impact Financial, we believe in providing a clear, personalized view of all your financial options. We understand that annuities are complex, and that they may or may not be the right fit for your specific situation. Our role is to help you understand what annuities are, how they work, and if they have a place in your broader retirement strategy.

Annuities in Retirement

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At Impact Financial, our philosophy is to act as your objective guide, not a salesperson. We don't believe in a one-size-fits-all solution, especially when it comes to a complex product like an annuity. Our approach is rooted in education, analysis, and a commitment to your best interests.

  1. Education: Before we consider an annuity for your plan, we'll ensure you fully understand it. We'll explain the different types—fixed, variable, and indexed—and the specific pros and cons of each, without the jargon.

  2. Holistic Analysis: We'll evaluate your entire financial picture. This means looking at your Social Security benefits, pension (if applicable), investment portfolio, and all other income sources. We want to see how an annuity might fit into your existing plan to create harmony and address any income gaps.

  3. Risk and Reward Assessment: We'll help you weigh the potential for guaranteed income against factors like fees, liquidity, and inflation risk. Our goal is to ensure that if an annuity is chosen, it is the right tool for the right purpose within your portfolio.

  4. Integration with Your Plan: If an annuity is a good fit, we'll work to integrate it seamlessly into your overall strategy. This helps ensure that it complements your other investments and helps you work toward achieving your goals for income, growth, and legacy.

Our role is to help you cut through the noise and determine whether an annuity is a valuable piece of your retirement puzzle. We believe that with the right information, you are empowered to make the best decision for your financial future.

Our approach to annuities

Common questions we help our clients answer

  • What are the fees associated with an annuity, and how do they impact my long-term returns?

  • What happens to my money if I pass away?

  • Will an annuity work with my other retirement income sources?

  • What is the difference between a fixed, indexed, and variable annuity?

  • Are annuities taxed differently than my other investments?

*Fixed and Variable annuities are suitable for long-term investing, such as retirement investing.  Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.  Variable annuities are subject to market risk and may lose value.​

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