Annuities are an investment tool like a Stock, CD, or a Bond. They serve a purpose. Annuities that we use in our planning do 3 things:
- Protect your principal from stock market down turns
- Provide you with growth linking your money to indexes with insurance guarantees to protect the down markets
- Provide a guaranteed lifetime income paycheck, which many time supplements your Social Security and Pensions without worrying about selling an equity at the wrong time to get income payments to you.
An annuity should not be used for all of your assets, but it may be a good tool for some of them, depending on what we are trying to accomplish