June is Annuity Awareness Month


We know, we know—annuities aren’t the sexiest investment product out there. But June is Annuity Awareness Month, and we want to take a second to make sure everyone understands how they can help protect you against outliving your income. This month we’ll be posting a few articles to help differentiate between the types of annuities available, explain how an annuity works (and what it costs), and explore whether an annuity makes sense for your financial situation. So stay tuned!


Let’s begin with a quick look at why you might want one in the first place:

Why you should purchase an annuity.

As you’ve probably heard, annuities are a way to save for retirement. They can help you reach your retirement goals and provide income for life.

In general, annuities provide safety, long-term growth and income. You can manage how much income and how much risk you’re comfortable with. Annuities are a way to save your money tax deferred until you are ready to receive retirement income. They’re often insurance against outliving your retirement savings.

What are annuities?

Annuities are a type of insurance product that provides you with an income stream. They’re typically used as a way to create a guaranteed income stream, but they can also be used for other purposes.

Annuities can be purchased by individuals or couples who want to ensure that they have money available for their retirement, especially if they think that Social Security benefits won’t be enough to cover their expenses.

What are the benefits of an annuity?

An annuity is a contract between an investor and an insurance company in which the investor pays money to the company, who then invests that money. In return, the insurance company makes regular payments of interest or dividends back to the investor.

Annuities can be used for a variety of reasons:

  • tax planning (they’re one way to defer taxes)
  • retirement planning (they can help you save for retirement)
  • estate planning (you can use them as part of your estate plan).

Annuities can help with taxes and stretches out a pool of money across your lifetime.

Annuities can help with taxes. Many annuities pay out a stream of income that is not taxed until you withdraw from the account, which gives more money to grow over time. And if you die before taking any withdrawals, your heirs will have more cash to inherit than if you’d only saved in a traditional investment like stocks and bonds, where capital gains may need to be paid on the way out.

Annuities can also help stretch out a pool of money across your lifetime. No matter how much money you make or have saved up for retirement, there’s always some risk that it won’t last as long as expected—and there’s always some chance that something unexpected will happen during those years that could affect how long your savings last (such as health care costs). Annuity payments are guaranteed by insurance companies and can even increase each year with inflation so they stay relevant throughout retirement.

An annuity can protect against outliving your income.

It’s a good idea to protect against outliving your income. As we age, our health care costs can rise and make it more difficult to maintain the same standard of living. Annuities provide a way for you to ensure that you have enough money coming in each month to cover those rising costs, even if you live longer than expected.

Annuities also help protect against inflation and market volatility: when prices increase or the markets climb up and down quickly, annuities help even out the fluctuations in returns over time by providing an ongoing stream of payments that remain relatively stable over time.


June is National Annuity Awareness Month, and it is a great time for you to learn about how annuities can work for you. An annuity can be an excellent investment vehicle that allows you to grow your money tax-free over time without market risk. You can also use it as an income vehicle once you stop working or retire from your job. Annuities are issued by insurance companies, and there are many different types of annuities available on the market today. We recommend that everyone takes some time during this month to learn about the benefits of purchasing an annuity so that they can make an informed decision when buying one in the future!

If you would like to learn more or have questions after reading this post, schedule a consultation with me. Click here 

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