Are Income Annuities a Good Idea? | Christy Capital Management

So an income annuity is when you put money into an annuity and you are giving up that money in exchange for a payment for the rest of your life.

The insurance company is giving you a guarantee to pay this monthly amount for as long as you live. Now depending on the exact annuity you get, there are different survivor benefit elections.

For you to get the highest payout possible, generally, whenever you die the money is over and your beneficiary doesn’t get anything. If you accept a lesser payment monthly, then there will be some benefit left over for your beneficiary.

This is the part that gets really murky.

Depending on when you die and how much remains in the balance, well that determines how much your spouse or your beneficiary may get.

That is one of the dilemmas with income annuities and where most of the confusion lies.

So what problem does an income annuity solve? Well, the fancy term for it is longevity risk or the risk of outliving your money. You live so long that your money runs out. The income annuity is set up to not run out. As long as you’re living, you’ll continue to get that check.

There are numerous pros and cons of getting an income annuity.

Do you even need to get one?
Will your financial plan work without one?

Either way, Let’s talk about it in this video.

If you need help figuring out whether you even need an annuity at all, please reach out to https://christycapital.com/

Or call the number on your screen. We love to help bring people peace in their retirement so that you can feel confident about retiring. Income annuities are something that you can't afford to mess up.

There are no do overs. There are steep penalties for canceling an income annuity if you decide you don't want it after all.

Make sure you talk with someone that can help explain the fine print to you. Some people NEED a guaranteed monthly payment, and this is a great way to solve that problem.

Other people don't need it, but there are still companies out there trying to sell you one. This solves a specific problem.

If you don't have that problem, then you don't need this solution.

We can give you honest feedback on what your planning needs are.

We are a fiduciary, so we are only recommending things that are in your best interest. Please go to our website https://christycapital.com/

I would love to talk with you. Thanks for watching. I'm Mel Stubbs.





The information provided is not intended as tax or legal advice. Figures shown are for illustrative purposes only furthermore, the information nor the illustrations provided may not be used to avoid any tax penalties. This content represents the general views of Christy Capital Management and should not be regarded as personalized investment advice Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice. Retirement Benefits Institute, Inc., and a portion of its contents merged with Christy Capital Management Inc. Brandon Christy, former President of Retirement Benefits Institute, is also the current President of Christy Capital Management, Inc, a registered investment adviser.