Annuities — A1 Legacy Protection
Annuities
Turn your savings into a guaranteed income stream you can't outlive. Annuities provide financial security in retirement — whether you want steady fixed payments or growth tied to market performance.
What Is Annuities?
An annuity is a contract between you and an insurance company. You make a lump sum payment or series of payments, and in return, the insurer provides regular disbursements beginning either immediately or at a future date. Annuities are designed to provide a reliable income stream in retirement and can be structured to last a set number of years or for the rest of your life.
Why Choose Annuities?
- Guaranteed income you cannot outlive
- Tax-deferred growth during accumulation phase
- No contribution limits (unlike IRAs or 401ks)
- Options for fixed, indexed, or variable growth
- Death benefit options for your beneficiaries
- Rider options for long-term care or inflation
- Predictable income for retirement budgeting
- Protection from market downturns (fixed/indexed)
Is Annuities Right for You?
Pre-Retirees
Those 5–15 years from retirement who want to accumulate funds tax-deferred and convert to income later.
Retirees
Individuals who want to convert a lump sum (from a 401k rollover, inheritance, or savings) into a guaranteed monthly income.
Conservative Investors
Those who want growth potential without the risk of losing principal — fixed and indexed annuities offer downside protection.
High Earners
Individuals who have maxed out their 401k and IRA contributions and want additional tax-deferred savings.
Pension-Less Workers
Those without a traditional pension who want to create their own guaranteed income stream in retirement.
Estate Planners
Individuals who want to pass wealth to heirs with built-in death benefit provisions.
How It Works
Choose Your Annuity Type
Select fixed (guaranteed rate), indexed (tied to a market index), or variable (market-invested) based on your risk tolerance.
Fund Your Annuity
Make a lump sum payment or series of contributions during the accumulation phase. Funds grow tax-deferred.
Receive Guaranteed Income
At retirement, convert your annuity to an income stream — monthly, quarterly, or annually — for life or a set period.
Common Questions
What's the difference between fixed and indexed annuities?
A fixed annuity pays a guaranteed interest rate. An indexed annuity ties growth to a market index (like the S&P 500) with a floor to protect against losses and a cap on gains.
Can I access my money before retirement?
Most annuities have a surrender period (typically 5–10 years) during which early withdrawals may incur fees. After the surrender period, you can access funds more freely.
Are annuities taxed?
Annuities grow tax-deferred. When you withdraw funds, the earnings are taxed as ordinary income. Withdrawals before age 59½ may also incur a 10% IRS penalty.
What happens to my annuity when I die?
Most annuities include a death benefit that passes remaining value to your named beneficiaries, avoiding probate.
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