Stephen Dybwad

Stephen J. Dybwad | Highly Individualized Financial Guidance

A Brief Guide on Investing in an Annuity

You may have heard of annuities and have a general idea of how they work, but do you know how to find the right annuity for your needs? These products can be complex at times; however, by researching and consulting a trusted financial advisor, you will be well on your way to finding an annuity that works for you.

Benefits of Investing in an Annuity

The most attractive benefit of investing in an annuity is having a guaranteed lifetime income. This means that even if you outlive your money, the annuity will continue to provide you with a steady income until your death. Additionally, annuities typically have tax-deferred growth, allowing your money to compound over time without being taxed until it's withdrawn. Finally, many annuities come with a death benefit—meaning that if you die before receiving all of the payments from the policy, your beneficiary will receive whatever is left over from the policy.

Factors to Consider Before Investing in an Annuity

When deciding whether or not an annuity makes sense for your situation, there are several factors to consider. First and foremost is risk tolerance—are you comfortable investing in something with no guarantee other than what's stated in the contract? Also important are income needs—do you need guaranteed income now, or do you prefer to delay payments until later? Long-term care needs should also be taken into account when considering an annuity due to its built-in protection against inflation and longevity risk. Other factors include:

  • Guaranteed interest rates (if any).
  • Payout options (immediate vs. deferred).
  • Inheritance potential (since only some plans allow for beneficiaries).
  • Fees.
  • Other contractual features (such as surrender penalties).

Tips for Selecting The Best Annuity Plan

When selecting the best annuity plan for your needs, several tips can help ensure you make the right choice. First, it's important to compare the features and rates of different plans since they can vary significantly among providers. You should also review the provider service history—has this company had any complaints filed against them by regulators or customers? Check for a guaranteed interest rate—many companies offer fixed rates, but others may not offer any guarantees at all. Determine if surrender penalties or fees are associated with early withdrawal from certain policies, as these could significantly impact returns over time. Additionally, find out what your beneficiary would receive in the event of death since some policies pay out more than others regarding death benefits. Finally, consider opportunities for additional income offered through certain contracts, such as riders or bonuses, which could potentially increase returns over time.


An annuity can be an excellent product for retirees who want peace of mind knowing their money will last throughout their lifetime regardless of economic conditions or inflationary pressures; however, it's important to consider all factors before making any decisions about investing in one so that it makes sense both financially and emotionally given your particular situation. Ultimately, selecting the best annuity plan requires careful research and analysis but can pay off greatly if you choose wisely!

Talk to an annuity expert today and learn more about finding the right tool for your needs!

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Advisory services are offered through Aegis Wealth Management, Inc. which is registered as an investment advisor with the SEC and only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability.

Information presented is believed to be current. It should not be viewed as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Aegis Wealth Management, Inc., is not engaged in the practice of law or accounting. Tax rules are subject to change at any time. Content was prepared by a third-party journalist.

Stephen Dybwad picture

Stephen Dybwad

Stephen J. Dybwad | Highly Individualized Financial Guidance

Cincinnati, OH, Louisville, KY, Indianapolis and Madison, IN,

(800) 959-3526

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