Frequently Asked Questions About Money in Retirement
Straight answers to common retirement questions—focused on safety, income, and flexibility.
1) Can I lose money with a Fixed Index Annuity?
Immediate, fixed, and fixed index annuities are guaranteed by the insurance company that issues the contract. Your principal is protected by the claims-paying ability of that company.
Important: Excess withdrawals may result in surrender charges, and if you are under 59 ½ and make withdrawals, you may be subject to additional tax penalties.
2) Will I pay a lot in annual management fees on my annuities?
No. Unlike variable annuities—which have an investment feature and may charge multiple layers of fees—the annuities we recommend (immediate, fixed, and fixed index annuities) typically have no ongoing management fees for the base contract.
Optional benefits (riders) can add a clearly stated fee. With fixed and fixed index annuities, product costs are generally built into the pricing structure, so you’re not paying high added management fees every year.
3) Will my cash flow fluctuate with retirement annuities?
No. In our recommended strategies, your income is designed not to decrease once it begins. It may increase due to index-linked interest, inflation-focused features, or by delaying the start date, but the goal is stable or rising cash flow—not fluctuating up and down.
4) Will we be able to keep our money if one of us becomes ill or passes away?
Yes. Many annuities (or optional riders) include waivers for terminal illness or certain health events. Some can increase income for qualifying healthcare expenses. Death-benefit provisions may also be available.
A customized annuity strategy—built for your needs and goals—can address these contingencies.
5) Can these annuities provide income for the rest of my life?
Yes. All annuities offer annuitization options for lifetime income. Fixed Index Annuities can also be paired with lifetime income riders that provide income you can’t outlive while maintaining control of your account value, subject to the contract terms.
6) Does my retirement income have the potential to grow with inflation?
Yes. We look for features and riders that can increase lifetime income over time, helping offset rising costs and preserve purchasing power. Availability and specifics vary by product and insurer.
7) Will I completely lose access to all my money?
No. You generally do not have to annuitize. Many contracts allow up to a 10% annual penalty-free withdrawal (often after the first year). Larger withdrawals—or full surrender—can incur surrender charges during the penalty period.
Keep in mind: Most annuities have a surrender schedule (commonly 3–15 years). Don’t use money you’ll likely need soon. If you’re under 59 ½, early withdrawals may trigger IRS penalties.
Regular Review
Your life will change, and we understand that your plan must evolve alongside it. During our regular plan reviews, we meticulously assess your progress, make necessary adjustments based on new insights, and ensure all information remains current and relevant. Our dedicated support team is always available to provide timely answers to your questions, ensuring you are never left in the dark. Regular plan reviews are an integral part of our commitment to doing things the right way and empowering you to achieve your goals. Let’s work together to keep your plan aligned with your life’s journey.
