Annuities Do’s and Don’ts for Baby Boomers

Shawn Plummer

CEO, The Annuity Expert

Baby Boomer Do’s

Annuity General Dos And Don'Ts

Baby Boomers Don’ts

  • Give Up Control: If you’re using annuities to supplement a retirement income, don’t purchase an annuity that requires you to give up control to the insurance company (immediate annuities). You’ll never know what emergencies may arise in the future.
  • Tied Up All Your Money: Don’t spend all your money in an annuity. Keep at least five months of living expenses worth $85,000 liquid just in case of an emergency.
  • Put Your Money At Risk: If you can’t afford to lose money, don’t put your savings in that position. A better alternative is utilizing fixed index annuities to accumulate growth based on stock market performance without the risk of losing it.
  • Don’t Pay High Fees: Some annuities, such as variable annuities, come with a hefty cost to maintain the contract or for a bell and whistle. Shop and compare products. You may find a better deal at a lower cost to you.
Annuity Dos And Don'Ts

Next Steps

Annuities can be a great way to save for retirement and pay for long-term care expenses, but not all annuities are created equal. Make sure you research the products available and find the one that is right for you. Don’t give up control of your money or put it at risk – work with an experienced agent who can help you find an annuity that fits your needs. Get a free quote today by clicking below!

Annuity Do'S And Don'Ts For Baby Boomers

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What is an annuity account?

An annuity account is a financial product from insurance companies for saving for retirement and receiving regular payments later. Contributions can be made in a lump sum or multiple payments, growing tax-deferred until withdrawal. At a certain age, payments begin, lasting for life or a set period. Annuities offer a steady retirement income, enhancing financial security and managing the risk of outliving savings.

What is a good annuity rate?

A good annuity rate depends on the economy, the annuity type, and contract terms. For fixed annuities, a rate slightly above comparable Treasury yields is competitive. In a low-interest environment, 2-4% can be good. It’s crucial to compare rates across providers and consider the insurer’s financial stability and contract features. Rates vary, so assessing the overall value relative to your financial goals and market conditions is key to determining what’s favorable for you.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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