What is an annuity?
- Independent Brokers of Orlando
- May 12
- 2 min read
Are you planning for retirement and want to make sure your money lasts?
Let’s talk about annuities.
An annuity is a long-term financial product designed to help you protect your savings and turn them into predictable, reliable income. Think of it like setting up your own personal pension—except you’re in control.
Many of our clients have already built up retirement accounts like 401(k)s, IRAs, or TSPs. As they approach retirement, they’re not trying to chase high returns anymore—they’re focused on protecting their principal, avoiding market losses, and making sure their income lasts for life.
That’s where annuities come in.
There are different types of annuities, and each one serves a specific purpose:
Fixed Annuities offer guaranteed interest and steady income—great for peace of mind.
Fixed Indexed Annuities protect your principal while giving you growth potential based on a market index—without the risk of losing money in the market.
Variable Annuities let you invest for higher potential returns—but they come with market risk and higher fees.
Immediate Annuities start paying income right away, perfect for those retiring now.
Deferred Annuities allow your money to grow over time, with income starting later.
Some additional benefits include:
Tax-deferred growth while your money accumulates.
Rollover-friendly transfers from 401(k)s, IRAs, or TSPs—with no penalties if done right.
Roth-compatible options for tax-free growth and withdrawals under Roth rules.
And lifetime income choices that can cover you—or even you and your spouse—for life.
Plus, many annuities include legacy planning options, helping you pass on any remaining funds to your loved ones—tax efficiently.
Now, annuities aren’t for everyone—but they can be a powerful tool. A good rule of thumb? Don’t put more than 50% of your net worth into one. That’s not because annuities are risky—it’s because they’re meant for long-term income, not short-term liquidity.
At Independent Brokers of Orlando, we shop around to find the best options for you. We work with multiple top-rated carriers, and we’ll explain all your choices—clearly, with no pressure.
📅 And if you're ready to see what makes sense for your plan, fill out our intake sheet and schedule a free appointment today.
We’re here to help you retire with confidence—and stay protected for the long run.
