Annuities Do’s and Don’ts for Baby Boomers

Shawn Plummer

CEO, The Annuity Expert

Annuities. You either love or hate them, but there’s no denying that they are a significant part of the retirement savings landscape for Baby Boomers. Annuities can be complicated to understand and even more challenging to shop for. This guide will provide some don’ts regarding annuities to help make your decision easier!

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Not All Annuities Are Created Equal

There are over a thousand annuity products in the United States. Some of them are worthless and aren’t the right fit for you. Make sure you research and find the perfect one for you.

Annuity General Dos And Don'Ts

Baby Boomer Do’s

Retirement Income: If you’re using annuities to supplement a retirement income, find the annuity that pays the highest amount each month. Ignore bells and whistles, and focus on the paycheck you’ll receive. Solve for inflation too!

Long-Term Care Expenses: You have a 70% chance you’ll need LTC in the future. There’s no need to go broke paying for it. Utilize a long-term care annuity to pay those expenses at a fraction of the cost.

Annuity 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.

Annuity Do'S And Don'Ts

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 General 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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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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