Top Annuity Providers

• Genworth
• Established: Since 1871; operates in over 25 countries.
• Strength: $100+ billion in assets; included in S&P 500 and Fortune 500.

• Specialty: Retirement income solutions.

• Fidelity

• Established: Nearly 70 years of experience.
• Strength: Serves over 23 million customers.

• Specialty: Variable annuities, investment management.

• Prudential

• Established: Leader in financial services.
• Strength: Daily lifetime income variable annuities and premier options.

• Specialty: Investment-oriented variable annuities.

• Pacific Life

• Established: Over 145 years of service.
• Strength: Offers growth and retirement protection solutions.

• Specialty: Fixed and variable annuities.

• American Equity

• Established: Publicly traded, American-owned.
• Strength: Rated A- by A.M. Best and Standard & Poor's.

• Specialty: Fixed and fixed-index annuities, immediate annuities.

• AIG

• Established: 160+ years of asset protection.
• Strength: Provides income solutions to over 1.5 million Americans.

• Specialty: Retirement-focused annuities and long-term financial security.

• MassMutual

• Specialty: Fixed deferred, income annuities, and life insurance hybrids.

• Strength: Combines insurance with investment options.

• Allianz

• Established: 115+ years of experience.

• Strength: High financial ratings, offering fixed and variable annuities.

• Farm Bureau Annuities

• Established: Since 1939; based in Des Moines, IA.

• Specialty: Liability, auto, home, property insurance, and life annuities.

• Brighthouse Financial

• Specialty: Offers hybrid options, multiple annuity and life insurance products.
• Strength: Personalized plans for varied financial needs.

Types of Annuities Explained

• Fixed Annuities:
• Guaranteed, steady payouts.

• Low-risk option for predictable income.

• Variable Annuities:

• Payouts depend on investment performance.

• Higher risk but potential for growth.

• Indexed Annuities:

• Combines fixed and variable benefits.

• Includes a guaranteed minimum payout, with some growth potential tied to market indices.

• Immediate Annuities:

• Begin payouts shortly after purchase.

• Suitable for retirees seeking quick income.

• Deferred Annuities:

• Accumulate funds over time, with payouts starting later.

How to Choose the Right Annuity

Key Factors to Consider

• Expenses:
• Surrender fees, monthly fees, and commissions.
• Funding Options:
• Lump-sum or periodic payments.
• Payout Options:
• Lifetime payments or guaranteed periods.
• Company Stability:
• Credit quality, financial strength, and history.

Withdrawal Options

• Annuitization: Converts annuity into periodic payments.
• Systematic Withdrawals: Flexible payment schedules.
• Lump Sum: Total withdrawal with potential tax penalties.

Who Should Consider Annuities?

• Savers: To grow funds tax-deferred.
• Retirees: For guaranteed lifetime income.
• Social Security Recipients: As a supplemental income source.

FAQs

• How much does a $100,000 annuity pay?

• Example: ~$660/month for 20 years at 5% growth.

• Can you lose money?

• Possible with variable annuities due to market risks.

• Best type for risk aversion?

• Fixed annuities offer guaranteed returns.

• Is an annuity a good investment?

• Yes, for steady retirement income - ideal after consulting a financial advisor.

• What's the best age to buy?

• Median first-time buyers are 52, often between ages 50-64.

Summing it all up: Annuities can provide reliable retirement income with options tailored to individual needs and risk tolerance. Compare providers and consult financial advisors to maximize benefits.

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