Annuity Do’s and Don’ts For Baby Boomers

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding How Annuities Benefit Your Retirement

Retirement Income

Annuities can be an excellent way to supplement your retirement income. Focusing on annuities offering the highest monthly payments can ensure a steady and reliable income stream. Avoid getting distracted by unnecessary features and concentrate on the paycheck you’ll receive. Addressing inflation is also crucial to maintaining your purchasing power over time.

Long-Term Care Expenses

Planning for these expenses is vital, as there is a 70% chance of needing long-term care (LTC) in your lifetime. Utilizing a long-term care annuity can help you cover these costs without draining your savings. This option allows you to pay for LTC at a fraction of the cost, ensuring financial stability during your later years.

Control and Flexibility

Maintaining control over your finances is essential, especially in retirement. Avoid annuities that require you to give up control to the insurance company, such as immediate annuities. Keeping your money accessible ensures you can handle unexpected expenses or emergencies.


It’s crucial not to tie up all your money in an annuity. Keep at least five months’ worth of living expenses liquid to ensure you have access to funds in case of emergencies. This financial buffer provides peace of mind and flexibility.

Risk Management

If you can’t afford to lose money, avoid risking your savings. Fixed index annuities offer a safer alternative, allowing you to benefit from stock market performance without the risk of losing your principal. This strategy balances growth potential with financial security.

Cost Efficiency

Be mindful of high fees associated with some annuities, such as variable annuities. Shopping around and comparing products can help you find a better deal at a lower cost. Reducing fees maximizes your returns and ensures more of your money works for you.

Annuity Dos And Donts

How We Can Help

At The Annuity Expert, we understand the challenges and uncertainties you face when planning for retirement. As an insurance agency, annuity broker, and retirement planner with 15 years of experience, we are committed to finding the best solutions at the lowest costs. Our goal is to help you secure a financially stable and fulfilling retirement.

We believe in empowering you with knowledge and options that align with your unique needs and preferences. We stand against one-size-fits-all solutions and high-cost products that don’t deliver value. Instead, we focus on personalized strategies that enhance your financial security and peace of mind.

Annuity Do'S And Don'Ts For Baby Boomers

What We Recommend

Step 1: Schedule a Free Consultation

The first step is to schedule a free consultation with our experienced team. We will assess your current financial situation, retirement goals, and concerns during this session. The main benefit is clearly understanding your needs and the options available to you.

Step 2: Customized Annuity Plan

Based on your consultation, we will create a customized annuity plan tailored to your specific needs. This plan will outline the best annuity products for your situation, focusing on maximizing your retirement income, covering long-term care expenses, and maintaining control over your finances. The main benefit is a personalized strategy that addresses your unique goals and concerns.

Step 3: Implementation and Ongoing Support

Once your plan is in place, we will assist you in implementing it and provide ongoing support. This includes monitoring your annuities, making necessary adjustments, and ensuring your plan remains aligned with your goals. The main benefit is continuous guidance and support, ensuring your financial security throughout retirement.

Features and Benefits

  • Personalized Advice: Tailored recommendations based on your specific needs and goals.
  • Cost Efficiency: Finding the best products at the lowest costs to maximize your returns.
  • Ongoing Support: Continuous monitoring and adjustments to ensure your plan stays on track.
  • Financial Security: Strategies that enhance your financial stability and peace of mind.

Addressing Common Objections

  • High Fees: We prioritize cost-effective solutions, ensuring you get the best value for your money.
  • Loss of Control: Our plans are designed to keep your money accessible and flexible.
  • Market Risk: We offer products that provide growth potential without risking your principal.

Failing to plan adequately for retirement can result in financial insecurity, stress, and the inability to cover essential expenses. Working with us ensures you have a robust plan in place, providing peace of mind and financial stability. You will experience a sense of security, knowing your retirement is well-planned and your finances are protected.

Contact us today for free advice or a quote and take the first step towards a secure and fulfilling retirement.

Annuity Advice 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.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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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