An annuity is a long term, long-term investment made with an insurance company. They can be used to protect principal and / or provide income during retirement, often for life.

There are three main types of annuities:

  1. Fixed Annuity
  2. Fixed Indexed Annuity (FIA)
  3. Variable Annuity (VA)

Annuities are complex financial instruments offered by many different insurance companies. As a result, there are many different variations of the three main types, each seeking to accomplish specific goals. Many people, like Suzie Orman and Ken Fisher, have negative things to say about annuities. However, we at TADA believe that certain annuities have a place in a client’s portfolio and, if used properly, they can be a critical tool for retirement planning.

Annuities can be used as a hedge against outliving your money, a safe way to guarantee a steady income stream for life and can provide protection against untimely market downturns.

However, they are complex financial vehicles with many add ons and fine print. Annuities should not be entered into without professional guidance and a full understanding of their place in the overall strategy.

We have over 30 years of constructing retirement plans utilizing various annuity strategies as a component to provide stability, guaranteed income and principal protection. As an independent advisor, we are licensed to provide and have access to the entire universe of annuity solutions. If an annuity is a good fit for your situation, we can choose the best fit from the top companies.

An annuity is not a strong growth investment or a cookie cutter solution for everyone but there are strong reasons why one would want to invest in one:

  • Provide a hedge against outliving your money.
  • Predictable income stream to create future budgets.
  • Protection against large untimely market downturns.
  • Potential for growth with limited risk.

For more information on if and how an annuity may be right for you, CONTACT US (262)578-8700

Fixed Annuities are long term insurance contacts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Withdrawals prior to age 59-1/2 may result in a 10% IRS tax penalty, in addition to any ordinary income tax. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.

Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty.  Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated.

Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.