Retirement income
A paycheck that keeps arriving after the last one stops
An annuity is a contract with an insurance company that can provide guaranteed income for life, with protection from market losses along the way.
The main types
Fixed
A guaranteed interest rate for a set term. Predictable, straightforward, and comparable to a CD with different tax treatment.
Fixed indexed
Returns linked to a market index with a floor that protects against loss, in exchange for a cap on the upside.
Immediate income
You exchange a lump sum for payments that begin straight away and continue for life, or for a set period.
Who tends to consider one
Annuities are not for everyone, and anyone who tells you otherwise is selling rather than advising.
They tend to suit people whose main worry is outliving their money rather than maximizing return — particularly those without a pension, who want a portion of their retirement income guaranteed regardless of what markets do.
They also suit people within about a decade of retiring who cannot afford a bad sequence of market years at exactly the wrong moment.
Worth understanding first
- These are long-term contracts with surrender periods
- Guarantees depend on the issuing company’s ability to pay claims
- Early withdrawals may trigger charges and tax consequences
- Features and costs vary widely between carriers
- They should complement other savings, not replace them
How the conversation goes
It starts with your situation, not a product. What income do you need, what sources already exist, what would a bad market year do to your plans, and how much of your money should be guaranteed rather than invested?
Often the answer is that an annuity should cover the gap between guaranteed income and essential expenses, leaving the rest invested for growth. Sometimes the answer is that you don’t need one at all.
Amanda leads this side of the practice, and works alongside clients’ accountants and attorneys rather than around them.
For CPAs and estate attorneys
If you advise New Hampshire families and need an insurance-licensed partner for the income, long-term care or life pieces, we’re glad to be that person — and to keep you in the loop rather than around it.