Annuity Solutions – Guaranteed Retirement Income Strategies

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Why Consider Annuities for Retirement

Annuities can convert a portion of your nest egg into guaranteed lifetime income, helping you cover essential bills no matter what markets do. As pensions continue to decline, many retirees are using retirement annuities to create their own pension-like paycheck. Realegacy Partners helps you decide how much income for life you need and how annuities can complement your broader plan.

Types of Annuities Explained

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Immediate annuity (SPIA)

Turn a lump sum into checks that start within 12 months—useful if you’re retiring now and want predictable income.

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Deferred income annuity (longevity)

Fund today; start income later (for example, at 75–80) to hedge longevity risk.

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Fixed annuities (multi-year guarantee)

Earn a set interest rate for a term—CD-like, tax-deferred, with options to later convert to income.

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Fixed indexed annuity (FIA)

Interest is linked to an index with caps/participation, but no market losses credited to the policy; optional riders can add future income for life.

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Variable annuity

Market-based subaccounts with growth and downside risk; may include riders, but fees and volatility are higher.

Income Riders & Lifetime Withdrawals

Some fixed indexed and variable annuities offer income riders—features that grow a benefit base for future guaranteed lifetime income without annuitizing. You keep control of your account while securing a withdrawal amount for life. Realegacy Partners can evaluate whether an income rider suits your timeline and budget.

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Annuity Pros and Cons (Honest Trade-offs)

Pros
  • Income for life, protection from market downturns (for fixed and indexed products), tax-deferred growth, customizable beneficiary options.
Cons
  • Limited liquidity during surrender periods, potential rider/contract fees, and generally lower upside than equities in bull markets. We explain the annuity pros and cons clearly so you can decide with confidence.

Frequently Asked Questions about Annuities

  • Are annuities safe?

    Fixed and indexed annuities are backed by the claims-paying ability of the insurer and are highly regulated; variables carry market risk.

  • What happens if I die?

    Depending on the option chosen (period-certain, refund), beneficiaries can receive remaining value.

  • How much income will I receive?

    It depends on age, type, amount, and rates—older ages or longer deferral generally mean higher payouts.

  • Can I access my money?

    Most contracts allow limited annual withdrawals; larger withdrawals may face surrender charges early on.

  • Do annuities have fees?

    Fixed often have none explicitly; riders and variable annuities typically do. We disclose every cost up front.

Annuities vs 401(k) and Other Investments

Annuities are insurance, not investments. They prioritize steady income and principal protection (for fixed/indexed) rather than high growth. Many Lubbock retirees pair an annuity for retirement income to cover essentials, then use IRAs/401(k)s and brokerage accounts for growth and flexibility.