Looking for protected retirement income or growth solutions, but overwhelmed by annuity options? Mauricio Reyes, a licensed independent advisor at Reyes Benefits, shares a straightforward approach to evaluating and comparing rates, features, and benefits across variable and fixed annuities, enabling you to make informed decisions.
Choosing between a fixed annuity and a variable product is not just about the numbers—it's about matching your risk tolerance with your retirement timeline, income needs, and goals.
Today’s annuity market offers a wide range of choices—from traditional fixed annuities with steady, predictable returns to more advanced variable options that balance market growth potential with some downside protection. Independent financial advisors stress that the best annuity is the one aligned with your unique goals and circumstances, making objective, side-by-side comparisons across multiple providers more important than ever.
People approaching retirement often struggle with conflicting advice about annuities. Single-company agents push their carrier's products, while fee-only advisors sometimes dismiss annuities entirely. This leaves you caught between biased sales pitches and ideological opposition to valuable retirement tools.
The real challenge isn't whether annuities belong in retirement planning—it's finding the right product with the right features, crediting methods, and rates that match the client's needs. With over 200 insurance carriers offering thousands of annuity variations, comparison shopping requires expertise that most investors lack.
Here's what a comprehensive annuity evaluation should include:
1. Current Rate Comparison Evaluate fixed, indexed, variable, and RILA annuity options across multiple top-rated carriers. Include income payout rates, crediting methods, and bonus offerings.
2. Product Type Suitability Determine the most suitable type of annuity based on the client’s goals, including growth, income, legacy, or protection.
3. Income Projections Illustrate potential lifetime income based on age, investment amount, and payout start date. Include guaranteed income rider options and inflation-adjusted projections.
4. Fee & Cost Breakdown Detail all fees: mortality & expense (M&E), administrative, rider costs, and surrender charges. Clarify how fees impact returns and flexibility.
5. Risk & Return Analysis Assess market participation vs. downside protection (e.g., buffers, caps, floors, performance trigger rates, dual performance trigger rates). Include growth potential under various index performance scenarios or index alternatives.
6. Liquidity Features Explain withdrawal provisions, surrender periods, and penalty-free access options.
7. Tax Implications Review tax deferral benefits, RMD impact, and taxation of income distributions.
8. Insurance Company Ratings Include financial strength ratings (e.g., A.M. Best, Moody’s, S&P) to assess carrier reliability.
9. Legacy & Beneficiary Options Examine death benefit provisions, spousal continuation, and estate transfer efficiency.
10. Integration With Overall Plan Align the annuity strategy with the client’s retirement income plan, investment allocation, and estate goals.
Working with a fiduciary advisor who represents multiple carriers for fixed and variable annuities provides several advantages that single-company relationships cannot match. You get access to the entire marketplace rather than just one company's product lineup, objective fee comparisons that identify the best value propositions, and unbiased analysis of surrender periods, death benefits, and optional riders.
Disclosure:
All content is for information purposes only. Annuities are long-term financial products designed for retirement purposes. Guarantees are based on the claims-paying ability of the insurance company that issues them. Reyes Benefits City: Bradenton Address: 1201 6th Ave W Ste 100 #A650 Website: https://www.reyesbenefits.com/ Phone: +1 561 542 6715 Email: Mauricio@reyesbenefits.com