Annuities 101

Annuities Explained

With employer-sponsored pensions becoming more obsolete, along with an unstable Social Security program, making sure you have income in retirement is essential for replacing your employer pay check and ensuring that you live the retirement lifestyle you’ve been dreaming about.
An annuity can help you to do that – but only if it’s the right annuity for your specific goals and needs. Otherwise, choosing the wrong annuity could end up to be an expensive financial mistake and pose a grave risk to your financial future.
While an annuity specialist can certainly help you to wade through all of the “fine print,” knowing and understanding annuity basics can give you a good running start. This information can also give you a good solid foundation regarding:
  • What annuities are
  • How annuities work
  • What are the different types of annuities (fixed, variable, and indexed)
  • How annuity income is derived
  • What are the tax advantages of owning an annuity
  • How annuity rates are determined
  • What annuity fees and expenses you can anticipate
We do our best to explain annuities so that you fully understand what you’re getting. Just like most other products and services, not all annuities are exactly the same. For instance, even though a sports car and a minivan both have four tires and a steering wheel, what you can actually do with each of these vehicles differs a great deal.
With that in mind, having clear objectives about what you want an annuity to do for you is essential. Then, once you have established your short and long-term goals, you’ll have a much better idea of which – if any – annuity is best for you.
Becoming educated about annuities can also help you to ask the right questions about what a particular annuity will and won’t be able to do. This, in turn, can allow your financial advisor to narrow down the most appropriate one for your needs.

Ready to learn more about annuities?

Explore our Annuities Explained page below and click on the topics you would like to explore.

At Sooner Retirement, we specialize in helping people understand annuities and how these financial vehicles can help to supplement retirement income. We’ve done the shopping for you, so you can quickly and easily determine whether or not a particular annuity may be right for you.

We can also help you to compare annuities – including annuities you may already own – to get a glimpse of what you can anticipate in terms of future performance.
So, if understanding annuities is your goal, choose a topic below to discover which of the many different types of annuities, explained in simple terms, can be a part of your financial plan.
Still have annuity questions?
If so, feel free to reach out to us and talk with one of our annuity specialists. You can contact us directly by phone at (918) 938-7734. We look forward to hearing from you.

Annuity Basics

How Do Annuities Work?

The way annuities work may at first seem a bit complicated. That’s because these financial products can have many moving parts. But, by having a good understanding of the benefits, you could enhance the income you receive in retirement, as well as your tax-advantaged savings options during your working years.
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What Is a Retirement Annuity?

Even if you aren’t sure what a retirement annuity is, this financial vehicle could make the difference between living a stress-free retirement or worrying day in and day out about whether you’ll run out of income when you still need it in the future.
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What Is Annuity Income?

Annuity income has become a hot topic, particularly over the past decade or so. One reason for this is because employer-sponsored defined benefit pension plans have all but disappeared. This has left many individuals to fend for themselves when it comes to a steady, reliable stream of income in retirement.
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Annuity Types

Indexed Annuity

Indexed annuities have become very popular over the past decade or so – especially with those who are approaching retirement. That’s because an indexed annuity can provide you with market-linked growth, along with safety of principal – regardless of what’s happening with equities and interest rates.
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Deferred Annuity

A deferred annuity can help you to ensure that you don’t run out of income in the future. These annuities are designed for longer-term savings. So, unlike an immediate annuity that begins income payments within 12 months of purchase, deferred annuities allow you to grow your money tax-deferred, and then start taking an income stream down the road.
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Fixed Annuity

Over the past decade or so, the fixed annuity has become a key component of retirement income planning. Because people (on average) are living longer lives today, one of the biggest fears on the minds of retirees – as well as those who are preparing for retirement – is running out of income while it is still needed.
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Variable Annuity

If you’re looking for a way to add to your tax-advantaged investments – even if you have “maxed out” other qualified savings options like a traditional IRA and 401(k) – a variable annuity could be a good solution for you.
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An avid Sooner’s fan, I reside in Tulsa. But even though my office is physically located in Oklahoma, I actually work with clients throughout the United States.
Through our advanced technology systems, not only can we meet “face-to-face” virtually online, but we can also share computer screens so that we are all on the “same page.”
That way, you can see first-hand how various income strategies may work for your specific goals. All of my meetings are conducted over the phone and virtually, which means you do not need to leave your home or have to visit me in my office.
Our proprietary process has allowed us to view our clients financial future by testing there current and proposed strategies. With this advancement in technology, we will know what works and what doesn’t work.
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If you contact us, you will be able to speak with an insurance agent who is licensed to sell insurance in your state. Before making any financial decisions, make sure you do your homework and seek the advice of a qualified professional if you have any queries related to your situation. The issuing insurer’s financial stability and claim-paying capacity are critical to the assurance of annuity products. There may be extra benefits and income guarantees that can be gained by paying an additional annual premium for an annuity rider. A licensed insurance agent can be reached through our website and you may be offered insurance products for sale in your state.
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