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How to Tell Whether an Annuity is Right for Your Retirement

Annuities have earned a bad reputation within the financial community over the years, but why is that? When might an annuity actually make sense in Retirement? And how can you tell whether they’re a good fit for you?

We’ve covered annuities a bit on the show over the years but haven’t described the fact pattern where an annuity might actually make some sense. In this episode we cover the fundamentals of Retirement income planning, why mortality credits yield more income than bond interest, and when an annuity might be a good fit for your Retirement.

Show Notes
[07:00] Annuities – Grant starts off the conversation by explaining annuities and why they are popular around the country.

[12:04] The 4% rule – Grant describes the popular Retirement withdrawal method, “the 4% rule,” which implies retirees can securely withdraw 4% of their money in their first year.

[17:20] Mortality credits – Grant reviews longevity and annuity policies.

[23:30] Profitability – Grant explains how insurance companies design their products with their own profitability in mind.

[30:07] Candidacy – Grant explains who might be a good fit for annuities according to their background.

Resources
How Mortality Credits Make Annuities Work
safemoney.com/blog/annuity/how-mortality-credits-make-annuities-work/

Annuity Surrender Periods: Understand (and Avoid) Surrender Charges
thebalancemoney.com/annuity-surrender-period-charges-and-tips-to-pay-less-315092

Grant Bledsoe Financial Planner to Business Owners

I'm a financial planner to business owners, and the founder of Three Oaks Wealth. Our firm helps business owners align their business interests with their personal finances, often including the exit or sale of equity holdings.

I hold several professional credentials, including the CERTIFIED FINANCIAL PLANNER™, Chartered Financial Analyst, and Certified Exit Planning Advisor designations.

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