Insurance Planning, Assets and Investment Planning

Does An Annuity Fit Within My Financial Plan?

Updated 12/1/2023

**This guide has been updated to incorporate new changes made by The SECURE Act 2.0 that are effective for the 2024 year. Any SECURE Act 2.0 changes that are effective for 2025 will be incorporated into this guide at the start of the 2025 year.

Securing a predictable income stream in retirement is likely a very common goal across your client base. There are numerous products and strategies available, and your clients rely on you to guide the complex analysis required to establish an optimal retirement income plan.

Annuities can offer income protection as well as several other advantages that may work well within your clients’ financial plans. Depending upon individual needs and circumstances, annuities can be used to protect clients’ initial investments (premiums), supplement recurring income streams, allow tax-deferred growth, fund long-term care, and/or achieve wealth transfer goals, among other advantages.

An annuity strategy merits consideration before either being dismissed or implemented. To help you navigate an annuity analysis with your clients, we have created this checklist. It covers key considerations, including:

  • Variable, fixed, and indexed annuities
  • Immediate and deferred income annuities
  • Purchase/funding methods
  • Riders and other features
  • Tax considerations
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