The key to understanding annuities is recognizing that they are not investments but contracts. This is an important distinction when setting up your retirement income. Investments involve market risk and growth potential, while annuities are designed to deliver predictable outcomes based on agreed-upon payout rates or fixed interest rates. Watch this week’s video Annuity Comparison: FIA vs. MYGA. In our current interest rate environment, the guaranteed interest rate of a MYGA is a better option than trying to get hypothetical returns in a FIA.

We use FIAs with Income Riders when looking at the highest contractual income payouts. But if you bought an Income Rider, before you turn on the income, you should make sure you are still getting the highest contractual payout when those payments start. Watch this week’s Shootin’ It Straight With Stan: Swap Your Income Rider for a SPIA. It’s all about which product and carrier will give you the highest payout when you need the payments to start – with a contractual guarantee.

Annuities are valuable because of the contractual guarantees they provide. Ignore the noise and the sales hype. When you focus solely on the contract — the cold, hard facts — you can have the peace of mind that you deserve when you enter your retirement years. Watch this week’s Q&A Friday: How Do Annuities Actually Work? Embracing the contractual guarantee mindset will help you make an informed and confident annuity purchase that aligns with your retirement goals and income needs.

In the world of annuities, the truth is if you can’t find it in the contract, it doesn’t exist. You can look for the contractually highest payout by using my calculators. When you are ready to discuss those contractual guarantees, book a call with my team, we will help you achieve the financial security that will give you the peace of mind you deserve.

Focusing on the Guarantees,

Stan