eric-judy-2025

Annuity Misunderstandings

Fri, 10 Apr 2026 13:41:32 GMT

We see it everywhere: 8% guarantees, 10% income for life. When people call in, they often tell us things like, “I talked to someone who said 8% was the floor—the minimum I can earn,” or “This other place showed me how I can get 10% cash flow for life on my assets.”

And while those claims can be true, they often leave out some very important details.

When companies advertise annuities with 7%, 8%, or 10% guarantees, many people assume their money is growing at that rate. Most of the time, that’s not what’s happening.

That percentage usually applies to an income calculation value —a number that grows on paper and is used to determine how much income you can receive in the future. It’s not the same as your actual account balance, and you generally can’t withdraw it as cash.

There’s nothing wrong with this— if you understand it . The problem arises when people think, “If I leave this here for 10 years, I can walk away with that guaranteed amount.” You can’t. What you can do is turn that number into a guaranteed future income stream.

What Those Numbers Really Mean

Let’s start with the 10% income for life claim. Typically, that income rate, which is called the payout factor, is only available once you reach a much older age—often 80 or later .

Now let’s talk about the 8% guarantee . This is where confusion really sets in. That 8%, called a “roll up rate”, usually applies to a separate number inside the annuity , not to money you can withdraw as a lump sum. It’s only available if you take income under the terms of the income rider. If you cancel the annuity, you don’t get that 8%.

This distinction matters.

The Reality of “8%” and “10%” Annuity Guarantees

A Simple Example ¹

Let’s say someone puts $100,000 into an annuity and leaves it in deferral for 10 years. That $100,000 might grow into an income base of $200,000 used to calculate lifetime income.

But there’s another key factor: the payout percentage .

Payout rates depend on the insurance company and your age. At age 60, a payout might start around 5% . Some companies increase that percentage over time—annually or every five years.

So while it’s tempting to say $200,000 × 5% = $10,000 per year, it doesn’t always work exactly that way. Still, it gives you a baseline. You can know today what you put in and what the minimum guaranteed income will be when you turn it on in the future.

That future income is the contractual guarantee.

Income Roll-Ups vs. Real Account Value

The Real Rate of Return

Here’s what often surprises people: the actual yield on the annuity—the money that’s truly yours if you walk away—is usually much lower than the roll-up rate.

In many cases, that real return might be 2–3% . So instead of walking away with $200,000 after 10 years, you might have $130,000 or $140,000 once the surrender period ends.

Again, this doesn’t make annuities bad products. It just means they’re designed for a specific purpose .

Where These Annuities Can Work Well

These products can be very effective for someone who wants to design a guaranteed income stream for retirement —income they know they’ll want in the future. There’s flexibility built in, and you can change your mind, but the real strength of these annuities is income, not necessarily lump-sum growth.

Unfortunately, we regularly hear from people who feel they were misled because they didn’t fully understand how the product worked.

That’s why we insist on full disclosure upfront . Clear facts. No hype. You decide whether it fits your situation.

If annuities were explained with more transparency and common sense, they could be a very good tool for many people for what they’re designed to do—and they may fit well into many retirement portfolios.

If you found this helpful and want guidance on how annuities work and how they may benefit your strategy, we’d love to help. Schedule a strategy session with The Annuity Guys to build an income approach tailored to your goals—no pressure, no strings attached, just honest, unbiased guidance to help you confidently make the right decision for your retirement.

Thanks for reading, and here’s to building a retirement plan you can feel confident about.

Ready To Experience Annuity Guidance That Feels Human?

If a hybrid income strategy sounds like something worth looking into, we'd be happy to help you see how it might fit your retirement goals. You can schedule a no-cost annuity strategy call today. No pressure — just clarity and conversation. And don’t forget to subscribe to the Annuity Guys YouTube channel for more great retirement insights!

¹ Hypothetical example shown for illustrative purposes only, is not guaranteed, and does not reflect any specific annuity product. Actual results will vary by the carrier and product chosen.

Advisory Services offered through CreativeOne Securities, LLC an Investment Advisor. Annuity Guys and CreativeOne Securities, LLC are not affiliated. Licensed Insurance Professionals.

Annuity guarantees are backed by the financial strength of the issuing company, and for variable annuities, do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Annuities are not bank or FDIC insured. Annuities contain limitations including withdrawal charges, fees, limits on credited interest and a market value adjustment which may affect contract values. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuity withdrawals are subject to ordinary income taxes, including a potential 10% IRS penalty if taken before age 59-1/2.

Investment advisory services are provided in accordance with a fiduciary duty of care and loyalty that includes putting your interests first and disclosing conflicts. Insurance services have a best interest standard which requires recommendations to be in your best interest. Advisors may receive commission for the sale of insurance and annuity products. Additional details including potential conflicts of interest are available in our firm's ADV Part 2A and Form CRS (for advisory services) and the Insurance Agent Disclosure for Annuities form (for annuity recommendations). 

Percentage In Your Portfolio

Mon, 30 Mar 2026 19:34:41 GMT

One of the most common questions we hear is: Do I need an annuity? And if so, how much of my money should go into one? Today, let’s walk through how to think about that.

The reality is simple: everyone’s situation is different. Some people may want nothing in an annuity. Others may choose 10% , and some may allocate as much as 50% . It all depends on your foundational income needs and your comfort level with risk.

Some retirees already have their income needs covered through Social Security, pensions, or other sources , but still have a sizable amount of money they don’t want fully exposed to market volatility.

For people who dislike the idea of losing money—especially in retirement—annuities can feel more comfortable. You may be fine spending your money, but you don’t want the market spending it for you. In those cases, a larger annuity allocation can make sense, especially when it offers growth opportunities with less risk.

On the other hand, some people have no fear of the market. As long as their foundational income needs are met, they’re happy to stay invested. That’s one of the powerful ways annuities can be used: cover your essential income first, then invest with more confidence. When you don’t have to worry about how your basic needs are being paid for, market ups and downs become easier to tolerate.

The Role Annuities Can Play in a Portfolio

Once you start thinking about how much to allocate, the next question is what kind of annuity makes sense.

There are several options:

Variable annuities
Immediate annuities
Fixed annuities
Fixed indexed annuities

The right choice depends on your income needs, risk tolerance, and growth expectations. The focus here isn’t just growth potential—it’s the income guarantees .

With an immediate annuity , you give up control of a lump sum, and in exchange you typically receive higher guaranteed income. That income may or may not pass on to future generations unless it’s structured a certain way.

With fixed or variable annuities , you can add income benefit riders (usually for an additional fee). These riders can provide guaranteed income, more money potentially passing to heirs, and some ongoing control over account value.

Variable annuities also participate in market ups and downs, offering growth potential—but with added risk. Ultimately, it comes down to balancing what you want on the income side and what you want on the outcome side .

Annuities are long term retirement income vehicles and are not suitable for everyone. They involve fees and charges, including possible surrender penalties. Optional riders may involve an additional annual fee. Product and feature availability may vary by state.

Annuity withdrawals are subject to ordinary income taxes, including a potential 10% IRS penalty if taken before age 59-1/2. All guarantees are backed by the financial strength and claims-paying ability of the issuing company, and for variable products, do not apply to the performance of the variable subaccounts which will fluctuate with market conditions. Investing involves risk, including possible loss of principal. No investment strategy can ensure a profit or guarantee against losses.

Eric Judy offers advisory services through Client One Securities, LLC, an Investment Advisor. Annuity Guys Ltd. and Client One Securities, LLC, are not affiliated. Licensed insurance professional. We are not affiliated with any government agency, and do not provide tax or legal advice.

Do I Need an Annuity—and How Much Should I Allocate?

Determining the Right Percentage

So how do you figure out what percentage should go into annuities?

It comes down to outcome-based planning and your unique situation. You need an income plan that’s built around:

Your specific income needs
How those needs should be positioned
How each portion of your assets should be allocated to support that plan

There’s no one-size-fits-all answer—only what’s right for you.

If you found this helpful and want guidance on how annuities may fit into your own retirement plan, we’d love to help. Schedule a strategy session with The Annuity Guys to build an income approach tailored to your goals—no pressure, no strings attached, just honest, unbiased guidance to help you confidently make the right decision for your retirement.

Thanks for reading, and here’s to building a retirement plan you can feel confident about.

Risk Tolerance Matters

Ready To Experience Annuity Guidance That Feels Human?

¹ Goldman Sachs Asset Management, 2025 Retirement Survey & Insights Report: New Economics of Retirement, October 2025. Survey of 5,102 working and retired Americans conducted July 2025. Available at: https://am.gs.com/en-us/advisors/insights/report-survey/retirement-survey

² Goldman Sachs Asset Management, 2025 Retirement Survey & Insights Report, October 2025. The 7.1% payout percentage is the average of the top 5 highest-paying single premium immediate annuities starting at age 65, averaging male and female rates, calculated using major retail annuity providers' offerings at May 2025 rates. The 23% income boost is calculated by comparing a blended withdrawal rate (30% SPIA at 7.1% + 70% traditional at 4%) to a traditional 4% withdrawal rate. Available at: https://am.gs.com/en-us/advisors/news/press-release/2025/retirement-survey-press-release

How Annuities Can Boost Retirement Income

Tue, 10 Mar 2026 20:41:09 GMT

What if you could potentially increase your retirement income by 23% — without taking on more market risk?

That's not wishful thinking. According to the 2025 Goldman Sachs Asset Management Retirement Survey & Insights Report, blending annuities into a retirement plan could significantly increase the income you can safely spend each year.¹ And in today's uncertain economy — with inflation, market volatility, and rising living costs — that's an opportunity worth understanding.

I'm Eric Judy, a Retirement Income Certified Professional, Investment Advisor Representative, and co-founder of the Annuity Guys. Today, I want to walk you through what Goldman Sachs calls the hybrid income strategy — how combining traditional investments with guaranteed income from annuities could give retirees greater confidence and stability in their retirement years.

My goal is simple: to help you make smarter, more informed decisions about your retirement income. No hype. No pressure.

The "Financial Vortex" Facing Retirees

Goldman Sachs describes what they call a Financial Vortex — a cycle of competing financial priorities and life events that make it increasingly difficult for people to save for long-term goals like retirement.¹ Rising health care costs, housing expenses, caregiving responsibilities, and the ever-present worry of inflation and market uncertainty are putting pressure on retirement budgets from every direction.

It's no wonder so many Americans — especially those 55 and older — feel stretched thin. Even higher-income households aren't immune. According to the Goldman Sachs survey, 42% of younger working respondents (Gen Z, Millennials, and Gen X) reported living paycheck to paycheck, and nearly three-quarters (74%) said they struggle to save for retirement due to competing financial priorities.¹ And once you hit retirement, the challenge shifts from saving enough to making it last.

That's exactly where a guaranteed income component, like an annuity, can help bring some calm to the chaos.

How Goldman Sachs Arrived at That 23% Increase

Here's how the model works. Goldman Sachs studied a retirement portfolio where roughly 30% was allocated to a single premium immediate annuity (SPIA) with a 7.1% annual payout, while the remaining 70% stayed invested in traditional assets following the standard 4% withdrawal rule. The blended withdrawal rate came out to 4.93% — a 23% increase over the traditional approach alone.²

The annuity portion provides steady, predictable income — like a personal pension. The investment side offers growth and flexibility. Together, they create a balance that allows retirees to safely draw more income overall without increased risk exposure.

To put real numbers on it: under the traditional 4% rule, a $1 million portfolio generates about $40,000 per year. But with the blended approach, that same $1 million could generate roughly $49,300 annually.²

Think of it as building a sturdy bridge. One side is anchored in security, the other in growth potential. The result? A smoother, more sustainable ride through retirement.

Why This Approach Makes Sense Right Now

There are a few key reasons this hybrid strategy deserves your attention:

Market volatility protection . When markets dip, your annuity income stays steady. You're not forced to sell investments at a loss just to pay the bills.

Longevity risk management. Annuities can pay you for life, helping protect against outliving your savings — one of the biggest fears retirees face. In fact, 58% of workers surveyed by Goldman Sachs said they believe they may outlive their retirement savings.¹

Psychological peace. Many retirees find it easier to actually enjoy their money when they know part of their income is guaranteed, no matter what happens on Wall Street.

Inflation flexibility. The remaining portfolio can be adjusted for inflation or growth, giving you more control and adaptability over time.

This isn't about replacing your investments. It's about strengthening them.

A Real-World Example

Let's take Mary, age 66, with an $800,000 nest egg.

If she follows the traditional 4% rule, she'd expect about $32,000 a year in income. But by allocating 30% ($240,000) to an annuity paying around 6.5% and keeping the remaining 70% ($560,000) invested at a 4% withdrawal rate, her blended income jumps to roughly $38,000 a year.

That's about a 19% lift — and she's done it without increasing her investment risk. Plus, part of that income is guaranteed for life.

Now imagine the confidence that brings. Knowing the basics are covered, even if the market hits a rough patch.

Note: This example is for illustrative purposes only and does not reflect actual results. Individual outcomes will vary based on age, product selection, payout rates, and market conditions.

Key Takeaways

The Goldman Sachs study shows that a smart mix of annuities and investments can improve income sustainability and spending confidence.

A hybrid income plan can help manage risk, inflation, and longevity — all major concerns for retirees.

Annuities are not a one-size-fits-all solution . But when used strategically, they can be a powerful foundation for retirement income.

It's about balancing growth and protection — not chasing returns or gambling on the next bull market.

Ready To Experience Annuity Guidance That Feels Human?

Are 8% to 15% Returns an Annuity Scam?

Fri, 03 Oct 2025 16:15:24 GMT

“Eight Percent Annual Annuity Returns”… or even better! Before You Lock In Rates… Discover Up To 15% Income For Life or how about up-to 33% More Income for Life!

Where did we find these amazing offers? Believe it or not, right in the Ad section at the top and bottom of the page when we searched Google for the word “annuity”. Surely these offers must really exist or they wouldn’t put them on Google. In fact, I know these offers do exist — unfortunately, just not the expected results for the people this advertising targets. These offers are the classic bait and switch or maybe I would call them bait and twist. How so? Let me translate it from marketing speak into English – “eight percent annual return” translates into a captive income formula (not an actual return on your money!) that never allows you to walk away with that so called eight percent return. Want the 15%? You’ll have to wait to start your income at about age 90 to get that one, and the 33% more income for life pitch [continued below video…]

[continued] … Read the fine print it’s all hypothetical based on variables and comparatives that cannot be quantified for up to thirty years from now! Hence, these offers really do exist, but most of the time they are simply advertising from sales oriented annuity agents who hope you will click their ad and soon forget their click-bait after you submit your information based on their dubious offer that pulled you in, this will probably be just the beginning though, so, be prepared for even more annuity double-speak.

Just to be clear, we love annuities for what they do. We don’t believe they have to be sold by tricks or any type of deception. All financial products have pros and cons, including annuities. However, before you choose whom to work with when in comes to annuities we would ask you to think about what brought you to them – facts and education or smoke and mirrors? Do you really want an advisor who specializes in smoke and mirrors to handle your retirement?

Videos are educational and conceptual only and not a solicitation. They are not to be considered investment, insurance, tax or legal advice. It is recommended that you work with licensed professionals for individualized advice before making any important financial decisions. Annuities are not FDIC insured and their guarantees are based on the claims paying ability of the issuing insurance company. State Guarantee Associations, while offering specific protections, are not the same as FDIC insurance.

Can Annuities Enhance Stock Market Investing?

Fri, 03 Oct 2025 16:10:33 GMT

The stock market is well known for its roller coaster effect of up and down account values. For many retirees, this can mean more than a few restless nights and frequent trips to the store for antacids. Just the thought of losing thirty, twenty or even ten percent of your retirement savings can be unsettling at best. Did you know that owning fixed or fixed index annuities can actually enhance your stock market investing? How so? The difference between stocks and annuities comes down to…[continued below video]

[continued]… “stocks for wants and annuities for needs”. The **guarantees that annuities provide for income and safer growth without risk of loss can go a long way toward protecting retirees needs. We need **guarantees to assure our access to basic necessities like food, shelter, quality health care and those things we truly cannot live without. We want money to take nice vacations, buy new cars and clothes — but if we had a bad run in the market, we could survive without those additional items or purchases.

Allocations into annuities can enhance your market performance by not forcing you to sell your “stock losers” when they are down, just so you can eat or keep your home. The concept of dollar cost averaging is fairly well known to many people. It is the idea that if you buy into the market at regular intervals – you will buy more when the market is down rather than up. Unfortunately, the concept is true in reverse for retirees. When retirees draw dollars out on regular intervals, they will withdraw more often when the values are down versus when they are up – we call this reverse dollar cost averaging which can be devastating to retirement security when one faces running out of money unexpectedly, late in life!

Annuities are often used effectively as a bond alternative or an alternative non-correlated asset allocation.

What goes up, must come down – unless perhaps it’s a fixed or fixed index annuity.

Are Annuities a Viable Option – As Markets Soar?

Fri, 03 Oct 2025 16:06:10 GMT

The running of the bulls in Pamplona, Spain each July provides for amazing images as young men run alongside the massive bulls trying to demonstrate their bravado. Unfortunately, the images we typically remember of the “running of the bulls” are those dozen or so young men each year that had unfortunate timing and were trampled or gored by the massive bulls.

Running with the bulls is surely an exhilarating experience and for the hundreds that escape unscathed, it provides a lifetime of memories and stories to share. What can this teach us about investing and annuities? …[continued below video]

[continued]… So, what is the secret to running with the bulls or riding a surging bull market? It’s quite simple in my observation – it’s knowing when to get out of the way. How do you have the best chance of surviving the running of the bulls without injury? Get out of the way when they are blocks away rather than when you can feel their breath on the back of your neck. The term bull market has many similarities to the running of the bulls in Pamplona. It is all about risk and reward.

The best way to avoid getting gored in a bull market is to stay off the street of running bulls entirely. But everyone participating wants to say they ran with the bulls or beat the stock market.

So how do annuities come into this story? Easy… want to avoid getting gored by the market/bulls – run with them from behind. No, we won’t have the same claims as those running in front of the bulls risking it all but we can still say we ran with the bulls taking part in the exhilaration of being there. Now we get a part of the upside rewards in a bull market without the downside risk of losing it all!

You don’t see many retirees running with the bulls – I prefer to think it’s not just because they are older or slower but rather they have accumulated enough wisdom to know that running with the bulls in Pamplona or on Wall Street can have significant future lifestyle risks.

Most retirees or near-retirees feel it is important to take the necessary safeguards to protect their future lifestyle. Bravado for retirees becomes a smaller part of the equation as they ask the question – is it my time to run in front of the bulls or is it time to seek some protection and run a wiser, safer race with the bulls?

Are Set It & Forget It Retirements Practical?

Fri, 03 Oct 2025 16:01:18 GMT

Have you ever put a pizza in the oven only to discover you forgot the timer and your meal is burnt to a crisp? Wouldn’t it be nice to just throw it in the oven and know it will be just the way you like it without further attention to perfect timing? With pizza, maybe not. However, with retirement, proper planning with annuities allows you to set it and forget it! If you put the right…[continued below video]

[continued] …annuities in your retirement plan, you can have a safe and reliable strategy that will help you enjoy your retirement years on auto-pilot – instead of constantly monitoring your portfolio to hopefully avoid a financial meltdown of the stock market that could be considerably worse than burnt pizza!

Why MarketFree® annuities? Definitely, because most retirees based on our field observations want to reduce or eliminate stock market risk to their principal and have **guarantees that create a secure income stream which cannot be outlived. Hence, MarketFree® annuities do offer principal protection against stock market risk that most retirees are seeking and they can provide reasonable cash growth including income **guarantees prior to and throughout retirement.

A retirement plan that addresses your core income needs with **guaranteed sources of income for life, safe reasonable growth, low or no fees, and with access to principal has made MarketFree® annuities one of America’s fastest growing financial products especially when it comes to these specific types of annuities.

Why Should Anyone Rely on an Annuity?

Fri, 03 Oct 2025 15:57:47 GMT

By protecting your income foundation with an annuity or annuities — and including Social Security and/or a pension as non-commercial lifetime income annuities – you establish an income floor you’re not likely fall below for the remainder of your life. This floor has the probability of remaining protected regardless of economic circumstances. By creating this type of income floor, you allow for greater flexibility in retirement portfolio construction and greatly reduce the risk of loss presented by… [continued below video]

[continued] …unfavorable market returns. The flexibility of taking additional withdrawals for non-essential needs when returns are good; and otherwise, forgoing or limiting withdrawals from assets creates a greater chance for your preferred lifestyle to be successful in retirement.

As for annuities, the financial comfort created by the knowledge that your check is coming each and every month for as long as you live, shall we say, is priceless!

Life insurance companies are the only viable options to take longevity risk off the table because they operate on both sides of the longevity equation. The longer that someone lives, the more the insurance company pays in annuity benefits. However, conversely, it also delays the amount of death claims paid out and has longer time periods when life insurance premiums are being paid in keeping the actuarial needs of the insurance company in balance.
“Only a lifetime income annuity can optimize income over the indefinite period of a human life.” – Menahem Yaari

Annuity advocate Tom Hegna, the author of Pay Checks and Play Checks, cited the research of Menahem Yaari and insisted that it is a mathematical and economic fact that the only way a retiree can address the risks of retirement income needs effectively is through the ownership of a lifetime income annuity. Hegna stated that longevity risk is the number one risk in retirement. He argued that failure to address longevity risk multiplies the impact of other retirement risk elements including market risk, order of return risk, withdrawal rate risk, interest rate risk, inflation risk, and deflation risk.

High Annuity Rates or High Annuity Ratings – Which is Best?

Thu, 02 Oct 2025 20:38:21 GMT

Understanding the balance annuity rates and annuity ratings play in choosing an annuity is a key in making the best annuity choice for your retirement.

Third party rating companies should play the dominate role in helping determine the claims paying ability of an insurance company for you as a consumer. So, just how much weight should be placed upon the rating alone is the $64,000 dollar question! Is it a good decision to chose a carrier or product based upon high ratings alone – or do high annuity rates and great consumer benefits play the determining role?

Are 8 Percent Annuity Returns in 2025 Too Good to be True?

Thu, 02 Oct 2025 20:13:26 GMT

Unfortunately, most annuity purchasers do not understand that the 8% percent roll-up is a future income growth formula that is not available to them as a lump sum withdrawal. Thus, potential annuity clients are pitched on a 8 percent compounded return; so, they often don’t comprehend that when the salesman says growth for future income, what the salesman really means is that you can only use the 8 percent roll-up number to calculate future income. You cannot make a withdrawal to get the whole amount with 8 percent growth and then go buy a new home in Florida.

In a prolonged low rate environment like we have been experiencing, it can be hard to just say NO when we hear some of these high rates of return that are not fairly explained. So, just be sure to clarify that the rate offered will generate an outcome that will meet your financial objectives.

The good news is that some annuity providers have seen the confusion that has arisen from these offerings; and are designing products that are easier to understand while prohibiting agents from using “unfair smoke and mirrors type marketing tactics” to produce more business.

Just remember what your mom always told you… “If it seems too good to be true, it probably is…”

Annuity Salesman asks: “How would you like an eight percent compounded return? -Guaranteed!” Misled customer replies, “Where do I sign-up?”

Is the question/statement an outright lie? No, but it is one of the reasons so many people are confused about how annuities really work.

The five, six, eight, and even ten percent growth claims in the annuity world are most typically associated with a **guaranteed roll-up calculation that will be used to produce a payout number for a future lifetime income amount. Yes – that is a good thing and when annuities have been sold with the promise of producing a reliable future lifetime income, these calculations can be a valuable benefit. However, if a high return on your investment is expected based on these claims you will be disappointed.

Annuity Diversification – What Amount Per Company?

Thu, 02 Oct 2025 19:54:07 GMT

Still have some questions – Get more answers from the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) …

State life and health insurance **guaranty associations provide a safety net for their state’s policyholders, ensuring that they continue to receive coverage even if their insurer is declared insolvent. Working together through NOLHGA, the **guaranty associations form a national safety net, protecting insurance consumers all across America in their time of need.

You may have invested, scrimped, and saved most of your life for just this moment. Yes, you are ready to retire! Now, your advisor has made his or her annuity recommendation and you are wondering, “is it safe putting that amount into annuities?” or “ are annuities safe enough ?”

This is your retirement after all – is this selection prudent? Is there a safety net if the insurance company would fail? Should you split your annuity allocations over multiple companies? Does the state **guarantee association really protect you if the insurance company would fail? Why won’t your advisor talk freely about your State’s Guarantee Association?

Annuities: What Percentage Should Be in Your Retirement Portfolio?

Thu, 02 Oct 2025 19:23:30 GMT

[continued]…50% equities and 50% fixed annuities.

We typically do not espouse an exact percentage, but rather design our income plans to cover the foundational expenses with sources like social security, pensions and annuities. If you take care of the foundation the flexibility with your additional assets can be significantly enhanced.

The answer is… 50 percent (NOT!!!) — want to know why many insurance sales agents might say that?

It’s nice when empirical research validates something that we have observed and practiced for years with our financial planning clients.

Wade Pfau, a professor at American College who specializes in retirement income determined that based upon current market conditions a hypothetical couple ages 65 would have their best success for generating a four percent annual income by using a combination of…[continue reading below video]

Avoiding Annuity Income Rider Abuse!

Thu, 02 Oct 2025 19:12:25 GMT

[continued]…50% equities and 50% fixed annuities.

Are we all guilty, at times, desiring too much of a good thing?

After all, as Annuity Guys, we often extol the virtues of income riders and the good they do; however, they are not always good for you! Annuity income riders typically offer benefits such as lifetime income and roll-up or ratchet growth **guarantees toward future income. Unfortunately, most of these **guarantees come at an expense and for some people this expense or rider fee makes perfect sense while foolhardy for many. Riders used correctly can give the annuity owner a lifetime income **guarantee that makes the expense well worth it. But, wait just a minute… [continued below video]

Annuities: What Percentage Should Be in Your Retirement Portfolio?

Thu, 02 Oct 2025 16:16:50 GMT

[continued]…50% equities and 50% fixed annuities.

The answer is… 50 percent (NOT!!!) — want to know why many insurance sales agents might say that?

It’s nice when empirical research validates something that we have observed and practiced for years with our financial planning clients.

What is the Best Annuity?

Thu, 02 Oct 2025 15:47:59 GMT

[Continued] …Annuities do not **guarantee the highest income levels; they **guarantee a lifetime of income regardless of stock market results which may result in the highest income level, if the stock market performs poorly. In a prior video, we highlighted the study done by Wade Pfau, a professor at American College, where he determined that retirees greatest chance for a successful income in retirement came from a blend of annuities and equities. He has been cited as emphasizing the strength that annuities provide in their ability to safely cover the foundational income need for retirees.

As Annuity Guys®, we know firsthand the benefits and peace of mind that clients enjoy when they know that their foundational income need is **guaranteed. Structuring a retirement portfolio to provide the highest level of secure and **guaranteed success should be goal number one for both clients and advisors.

Two choices: Probability-based or safety-first and both require open-mindedness from advisers

In the debate over whether it is better to base a retirement income withdrawal rate on predictable historical returns or one that focuses on basic retirement needs, it appears that the jury is still out.

“Do you want to focus on the probability of failure or the magnitude of failure?” said Wade Pfau, associate professor of economics at the National Graduate Institute for Policy Studies.

Mr. Pfau, who has championed the conversation over new ways to manage a retirement income portfolio, presented his food for thought yesterday in Chicago at the InvestmentNews Retirement Income Summit.

The two schools of thought, as he explained them, include a “probability-based” approach of establishing a 4% withdrawal rate, and the “safety-first” approach that involves taking defensive measures to ensure that basic retirement needs are met.

The investment approach for the probability-based approach, for example, relies on systematic withdrawals and typically applies a total-return perspective.

In the safety-first approach, by contrast, the portfolio assets are matched to goals, and lifetime spending potential is the focus, as opposed to maximizing wealth.

Are you trying to figure out which annuity will offer the best way to grow your money and safely generate income that you can count on as long as retirement lasts (without depleting your initial principal) to reduce financial stress or even unexpected financial failure during retirement?

There are hundreds of insurance companies offering thousands of annuities — but how do you know which annuity is best for you? It’s really pretty simple. The best annuity is an annuity that fulfills your financial objectives. However, don’t be surprised if your best retirement annuity option includes a portfolio of traditional financial assets while simultaneously leveraging a few strategically selected annuities to meet your retirement income and growth goals.[Continued below video…]

Can Annuities Create Your Highest Retirement Income?

Thu, 02 Oct 2025 15:34:26 GMT

Two choices: Probability-based or safety-first and both require open-mindedness from advisers

“Do you want to focus on the probability of failure or the magnitude of failure?” said Wade Pfau, associate professor of economics at the National Graduate Institute for Policy Studies.

The investment approach for the probability-based approach, for example, relies on systematic withdrawals and typically applies a total-return perspective.

In the safety-first approach, by contrast, the portfolio assets are matched to goals, and lifetime spending potential is the focus, as opposed to maximizing wealth.

In a model arranged as a pyramid, the bottom layer in the safety-first approach is dedicated to essential needs, followed by a contingency-fund layer, discretionary-expenses layer and finally a legacy fund at the top…. Investment News

Which of these two statements about retirement income do you find more appealing?

My retirement income is contractually **guaranteed to meet my income needs as long as I am alive.

My retirement income has a growth potential with some possibility that I could run of out of money early.

If you opt for statement one, you may have a predisposition toward the predictability provided by annuities for some portion of your assets. Conversely, if you prefer more of a risk/reward scenario based on potential and probability, you may have an inclination toward statement two which is typically invested into a mix of securities including stocks and bonds. [Continued below video…]

Are Annuities Best for Income or Growth?

Thu, 02 Oct 2025 15:25:32 GMT

[continued] …grow at a level commensurate with the level of return required to meet the growth and income objectives of the retiree. The key element to this equation is not one we often discuss with fixed annuities and that is the element of growth potential verses **guarantees. Before we go too much further in discussing growth potential with fixed and fixed index annuities, we are not comparing the returns or risks to those associated with the purchase of equities. We are looking at MarketFree® Annuities for safer options where one gives up some upside potential for the elimination of investment losses in a down market. Since the time period when the Federal Reserve “cratered” the prime rate, it has been tough to find **guaranteed rates from banks or insurance companies with yields even approaching 4%. Unfortunately, when returns are this low in **guaranteed products, many retirees have been forced to withdraw portions of principal to sustain their lifestyles or forced to take investment risk with their portfolio in order to achieve their desired growth, however, today’s higher rates make it easier to achieve retirement income needs while maintaining principal.

Despite the tough economic environment, annuity companies have continued to innovate and develop products that truly offer unique benefits and **guarantees especially in the areas of growth and income.

The proliferation of insurance companies working with investment companies to offer clients access to a variety of indexing strategies has really put growth back into the discussion when evaluating the hybrid style fixed index annuities. This innovation has created annuities with higher interest rate potential for people looking to take realistic withdrawals while having the potential to maintain their principal balance without having to take any market risk.

Many financial advisors have started utilizing this new class of annuities as a core allocation for their clients portfolios. It solves the issue for many retirees who need real growth but cannot afford to enter or remain in the securities market and suffer debilitating losses, negatively impacting their retirement lifestyle.

These are not your grandfathers annuities. This is a new class of annuities aimed at offering growth potential and income – all while protecting one’s core retirement dollars from loss.

If you have not heard much about these financial instruments, it might be time to ask some questions about what you can do for **guaranteed income while safely growing your retirement portfolio.

You have heard the old saying, “you can’t have your cake and eat it too!” But what if you could?

Retirees often desire lifetime income **guarantees while maintaining their principal balance – which has been possible with some annuity strategies – especially in our current higher interest rate environment. The greatest challenge in the recent past has been the ability for annuities and bank products to… [continued below video]

Choosing a Retirement Advisor or Annuity Advisor You Trust

Thu, 02 Oct 2025 15:19:49 GMT

[continued]…What we want to impress upon you is that most bias is not necessarily bad; however, by knowing the type of advisor you are working with you can more readily pin-point their bias as acceptable or unacceptable, being wary if necessary. Within the industry we have two primary types of advisors – 1) commission driven insurance agents and securities brokers – working under a sales oriented Suitability Legal Standard, 2) fee-only advisors and fee-based advisors – working under a best interest of the client Fiduciary Legal Standard.

Each advisor type has its share of good and unfortunately some bad advisors. Ultimately, you should choose an advisor based upon their ability to assist you in accomplishing your financial goals and do so in the most economical and efficient way possible, which does not always translate to the cheapest or the most expensive.

There are times when paying a fee for genuine financial planning can open the door to more possibilities than just the free advice that is often offered by competing commission based sales people who may each claim their solution is best. It is also possible to work with a series 65 licensed financial planner who exercises full and open disclosure who also willingly accepts a commission, in place of fees from their client, as fair compensation for in-depth financial planning (identifying and minimizing conflicts of interest are the keys to success in this type of no fee arrangement).

Remember genuine referrals can be your best friend when choosing any advisor (warning; disregard written internet testimonials about advisors, many are fake).

Let me start with this basic truth as a Retirement Advisor & Annuity Advisor – THE ANNUITY GUYS ARE GUILTY – of believing annuities should be an important part of a well balanced retirement portfolio. We admit our bias in that we believe annuities are proven financial instruments that will provide safer, more secure growth and reliable lifetime income throughout retirement. However, finding a trustworthy licensed retirement financial planner with true annuity expertise to correctly balance your portfolio may not be as easy as one would think!

Likewise beware, you would be hard pressed to find any Registered Investment Advisors, Financial Planners or Annuity Salespeople who are truly unbiased, however, most will try to persuade you that they are in fact objective and unbiased. There are also many advisors that take a more balanced view toward securities and annuities and the roles they play to balance a retiree’s portfolio yet all of them will still have a unique bias based on education, training, experience, financial product availability and even at times their own self-serving motives… [continued below video]

Optimizing Annuity Income for Retirement

Tue, 30 Sep 2025 22:01:04 GMT

[continued] …deplete my principal.” Well, unfortunately there is not one annuity or fixed index annuity that can accomplish all retirement goals. However, you might be able to achieve all of your goals more effectively with a combination of annuities – typically a combination of immediate, fixed and specific variations of fixed index annuities.”

If we only had a nickel for every phone call that came into the office which started out like this…

“Hello, This is the Annuity Guys®. How can we help you?”

“Hi, can you please tell me which annuity is best?”

“Which of the two types are you referring to, variable or fixed?… and what variations of those two types are you interested in?”

“I just want the best one, maybe one of those fixed index annuities – the one that gives me the most income, most growth possible, and I don’t want to…[continued below video]

Fiduciary Financial Planner Vs. An Annuity Salesperson

Wed, 24 Sep 2025 16:07:40 GMT

Since then you may have searched the internet high and low, or talked with some annuity advisors who all offer the perfect solution for your retirement concerns; and yet under closer scrutiny what you have been shown comes up short of the annuity sales pitch. You know the volatility of the market for most retirement assets is hard to stomach and you want **guarantees. You need pension-style income for life and the opportunity to have an increasing income to help protect against inflation. You also want an allocation that will allow your money to grow without risk; and ideally you’d like to maintain your assets, if possible, to pass to the next generation.

So you’ve been looking at annuities. You talk with agent after agent and each of them has just the answer; they present the best annuity on the market — until you get to the next agent’s office. Each new agent tells you why his annuity is better than what the last guy just showed you.

By this time, you are ready to pull your hair out. You’re not afraid to make a decision yet you just don’t want to make the wrong one. This is your retirement. You have saved your whole life for this opportunity.

Many of you have now come to the conclusion that you wish these annuity pushers would admit – there is not one perfect annuity!

If you are seeking income, growth and principal preservation combined with safety and **guarantees, it is likely that you are going to need more than just one annuity.

Video Questions Answered About Annuity Income & Growth to Maintain Principal

Are Annuities just for income?
Should growth from annuities be part of sound retirement planning?
How can folks build an annuity portfolio that creates Income & Growth while Maintaining Principal?
Is laddering annuities a must?
Is there a silver bullet such as the one or two perfect annuities?
Are annuities built for different purposes and individual needs?
What different types of annuities might be used in laddering?
Should an annuity portfolio be part of a larger retirement portfolio with other investments?
What are the key components that make up a balanced annuity portfolio?
Safety, High rated Carriers.
Initial income with future step-ups as a hedge for inflation
Growth oriented annuities with a minimum floor and a probability of reasonable growth.
Tax efficiency
Efficient Wealth transfer
Where, when and how?

The Department of Labor (DOL) was in the news a few years ago with a push to require fiduciary standards for annuity insurance agents working with tax qualified accounts like 401Ks, IRAs, 403Bs, etc. This may have confused some investors looking for a true fiduciary financial planner who is series 65 licensed as a Registered Investment Adviser to assist with holistic balanced financial planning as a fiduciary for their retirement. The DOL rule also would not have extended to retirement savings that are not in tax qualified accounts, possibly causing further confusion!

Intuitively, most of us have a negative connotation with a salesperson/agent selling us an investment product or an insurance annuity – using their persuasive pressure “supposedly for our retirement’s benefit” verses being… [continued below video]

Annuity Income & Growth to Maintain Principal

Wed, 24 Sep 2025 15:53:35 GMT

Many of you have now come to the conclusion that you wish these annuity pushers would admit – there is not one perfect annuity!

If you are seeking income, growth and principal preservation combined with safety and **guarantees, it is likely that you are going to need more than just one annuity.

Video Questions Answered About Annuity Income & Growth to Maintain Principal

Are Annuities just for income?

Should growth from annuities be part of sound retirement planning?

How can folks build an annuity portfolio that creates Income & Growth while Maintaining Principal?

Is laddering annuities a must?

Is there a silver bullet such as the one or two perfect annuities?

Are annuities built for different purposes and individual needs?

What different types of annuities might be used in laddering?

Should an annuity portfolio be part of a larger retirement portfolio with other investments?

What are the key components that make up a balanced annuity portfolio?

Safety, High rated Carriers.

Initial income with future step-ups as a hedge for inflation

Growth oriented annuities with a minimum floor and a probability of reasonable growth.

Tax efficiency

Efficient Wealth transfer

Where, when and how?

Do you remember the first time you heard about annuities? It might have been in a nice restaurant hearing a presentation from an advisor or maybe your good friend who could not resist telling you about how he just discovered a great answer for secure retirement income and growth!

Reduce Your Concern of Outliving Retirement Dollars!

Wed, 24 Sep 2025 15:46:40 GMT

[continued] …that replacing your typical bond allocations in retirement with annuities can increase your likelihood of not running out of money in retirement dramatically. Annuities are like bonds – with benefits, they add the insurance component of lifetime income even if the principal account has been depleted. Everyone needs lifetime income whether that be from Social Security, pensions, or supplemented with some additional sources.

Research done by the Society of Actuaries has shown that we are living longer than ever. In fact, on average 2 years longer than we were just 10 years ago – which is great news, right? Purchasing an annuity allows retirees to pool the risk of living too long across all annuity purchasers so they don’t have to save and invest as if they were going to live to 100; and they also don’t have to pay for an annuity designed for someone who will live to 100. They can purchase an annuity that is designed for their pooled life expectancy.

Emotionally, most of us are attached to our savings and investment accounts. Not surprising since we have spent our whole lives building these accounts up and the thought of using any portion of those dollars to purchase an income stream seems distasteful, at best. However, studies indicate that most annuity owners soon lose their emotional attachment once their income payments begin.

Knowing the type of annuity that can best reduce the fear of running out of money in retirement for each person is specific to each individual, and situation, and sometimes the correct answer is no annuity – while for others, it can be a combinations of annuities. If you are retired or nearing retirement, you would be doing yourself a disservice if you did not at least examine annuities for what they can do to secure your retirement.

Have you ever made a trip to the grocery store where you picked up a few items, walked up to cashier only to realize seconds into the transaction that you don’t have your wallet or any way to pay for the items you picked up? If this has never happened to you, be thankful, because it is embarrassing. You suddenly feel like everyone is watching and judging you and there is nothing you can do other than apologize and get out of there as quickly as possible.

Just knowing that not having money in an awkward situation like the grocery counter can cause such consternation. Can you imagine the debilitating impact it has on retirees as their golden years become filled with doubt and fear just because they have benefited from a longer than expected lifetime of spending-down their savings?

Are annuities the only answer for not running out of money in retirement? No; however, studies by Dr. Wade Pfau suggest…[continued below video]

Exposing Why Some Advisors Love or Hate Annuities

Wed, 24 Sep 2025 15:40:30 GMT

[continued] …Brokers want to make a commission from selling you mutual funds or variable annuities and then collect trail fees from their assets under management. Insurance agents typically make one commission from an insurance sale including annuities. There’s not really that much difference, so why is there so much animosity? They all want your money! That is how they get paid. Brokers and insurance agents want to get your money for their products or management since they are in serious competition for your assets.

Let’s face it, as the baby boomer generation enters retirement, more and more assets are moving from aggressive growth allocations into safer money options like annuities. Retirees face the challenge of turning their savings into lifetime income and they have to protect every dollar they can from the potential of market loss – yet many brokers don’t understand that mode of thinking.

They surmise that even if you lose 30% this year, you’ll hopefully be able to get it back in the next three to four years because that is how markets should work. Most brokers are accumulation specialists. They try to tell you the hot stocks and funds to buy but they don’t really know how to properly create a balanced portfolio that protects and grows assets while **guaranteeing a retirement income that you cannot outlive.

That being said, fixed index annuities are not the panacea for all your financial needs. They are wonderful for creating a secure income or providing reasonable safer growth – but they are not securities and they should not be compared unfairly to them. Unfortunately, most consumers that are transitioning into retirement have been conditioned to think in terms of accumulation, so they are more comfortable using terms from what they have learned throughout years of “investing”. The transition into annuities for income, limited growth, and safety typically means learning to talk more about the safer return OF your money with reasonable growth – not the sizable returns ON your money that is left at risk.

Too many insurance agents try to talk like brokers and show off the “sizzle” of the 8% income rider growth formulas – even though it may not be the right annuity, it’s the easier “sell” because consumers can relate to the “growth guarantees”. So annuities get the occasional black eye when they are represented incorrectly by miss-informed or at times bad advisors who don’t really understand the value of educating themselves or their clients about the proper use of annuities. They are definitely not the White Hat Good-Annuity Guys®, they pretend to be! In our humble opinion, your best advisor choice is to work with a Fiduciary Registered Investment Advisor having extensive experience with securities and annuities, who takes a balanced, holistic approach to retirement planning.

“Why can’t we all just get along?” It seems that the spirit of divisive partisan politics has invaded the investment world of annuities vs securities and more specifically fixed index annuities. For a myriad of reasons it seems many advisors end up in one camp or the other – loving or hating annuities while at times masking their true bias!

Investment broker types typically avoid or hate fixed index annuities but love promoting variable annuities# and other securities products. Insurance agents on the other hand love fixed index annuities and have little appreciation for variable annuities# or investing in securities… [continued below video]

Who Should Not Buy Annuities?

Wed, 24 Sep 2025 14:43:40 GMT

Are You One of These Five Profiles who probably should NOT buy an annuity?

There are likely to be many other reasons why annuities may not be a great fit, however, these five are the ones we find to be most prominent as we talk to hundreds of folks each month who must decide if annuities fit their retirement needs.

Of course the antithesis of the five profiles who should not buy annuities would be the five profiles of who should buy annuities.

Are you an Aggressive Investor with an Appetite for Risk?
Do you believe the Stock Market is poised for a couple decades of steady growth?
Are you age twenty to forty?
Are you over age eighty?
Do you believe that all financial institutions will fail soon and anarchy will prevail?

Are You One of These Five Profiles who probably SHOULD buy an annuity?

Those who do not trust the stock market and are not wanting higher risk in retirement years.
Those who believe we may have rough times in the economy over the next couple of decades.
Those who are no longer young or those with a shorter time horizon before retirement.
Those who have a twenty to thirty years before they reach their eighties or nineties.
Those who believe that things may get difficult but also believe that the world will be unlikely to deteriorate into anarchy.

So, you must determine which profile fits you best and that is a good basis to 1) begin the process of choosing the best annuities for your situation, with a well-qualified expert or 2) say no to annuities and never look back!

Annuities, Investing and Retirement – What’s Your Strategy?

Wed, 24 Sep 2025 14:35:16 GMT

A goal without a plan is mostly just a hope and a wish. So, do you have a well thought out retirement planning strategy or just a hope and wish for your retirement?

We encourage the use of annuities to provide reliable income and safer growth for some portion of a well designed retirement plan. Does this mean we believe that every retirement plan should only have annuities?

Of course not! If you are comfortable taking some stock market risk and you have ample core income from pensions or Social Security to cover your foundational income need, then an annuity may not be one of the better options for your situation.

Before pro-annuity owners or advisors start questioning our prior statement, we agree that there are additional savings and growth benefits to annuities beyond their ability to provide a lifetime of retirement income.

Annuities are not (typically) the whole answer to a solid retirement plan – nor are equities. We have however, often spoken with many clients whose retirement plan is reliant upon the overall performance of the securities market and their simply hoping for a successful retirement outcome, with out any certainty!

When in comes to retirement planning, our retirement number is 100%. Make sure you have done everything to insure you are 100% comfortable with your retirement plan and its 100% balanced to your goals and to the limits of downside risk you can accept.

Long Term Care Annuity and Life Insurance Solutions

Tue, 09 Sep 2025 18:19:22 GMT

Are Annuities the Best Answer to High Retirement Costs?

Tue, 09 Sep 2025 18:09:54 GMT

Five Common Annuity Regrets

ENewman@creativeone.com (Perry Boles) — Wed, 03 Sep 2025 17:11:59 GMT

Most of us have a few regrets in life… but seriously – annuity regrets???

Perhaps we have gone too far as the Annuity Guys® in releasing the five most common annuity regrets expressed by folks we have spoken with, across the country…

I’m losing money in my annuity and still paying high fees!
Cashing my annuity in will hurt, it has a high surrender charge!
Wish I had understood the annuity better that I was advised to buy!
Laddering my annuities instead of just buying one large annuity could have been better?
Why did I wait so long to get annuities?