CALL US: (888) 440-2468

CALL US: (888) 440-2468

have an annuity question?
have an annuity question?

An Annuity Buyer’s Checklist Can Be Beneficial

With the multitude of “moving parts” that are found on annuities, these financial vehicles can sometimes be tough to fully understand. So, while an annuity can certainly provide you with tax-deferred growth and income certainty, you could be leaving something out when you’re considering the various options. That’s why having an annuity buyer’s checklist can be beneficial.

Having a step-by-step guide in hand, you can be better assured that you are narrowing down your annuity options to those that could fit your needs the best. Going in with this knowledge, you can also better anticipate how the annuity will and won’t perform.

Annuity Buyer Checklist

Before you commit to purchasing an annuity, there are several factors that should be considered. These include your:

  • Age
  • Marital status
  • Other retirement income sources
  • Need for tax-advantaged growth
  • Tolerance for market risk
  • Time frame before retirement

Once you have all of this information at hand, you can start going through the annuity buyer checklist and determine whether or not an annuity will fit your needs, and if so, which type of annuity may be best for you.

_____ A fixed/indexed/variable annuity would be best for your needs.

_____ The annuity will primarily be used for tax-advantaged accumulation/income purposes.

_____ You understand the investment/index/interest rate options associated with the annuity.

_____ You understand the guarantee(s), as well as any “tradeoffs” you may need to make in order to receive them.

_____ You understand why and how much additional premium may be charged for various features or riders on the annuity.

_____ You are aware of the surrender period (if you access funds from the contract value) and how long it will last.

_____ You are aware of the taxes you may incur upon withdrawal/income payout.

_____ You are aware that there may be an additional 10% IRS early withdrawal penalty if you access funds prior to age 59 ½.

_____ You have named at least one beneficiary who could receive the death benefit from the annuity.

_____ Other retirement income sources include Social Security/Employer-sponsored pension/other.

_____ You meet the minimum/maximum age requirement for the purchase of an annuity.

_____ The funds being contributed to the annuity will come from personal savings and investments/qualified retirement savings (such as an employer-sponsored traditional 401k).

_____ You have reviewed the insurance company’s ratings (from A.M. Best, Standard & Poor’s, Moody’s Investor Services, and/or Fitch) to determine its financial strength and prior claims-paying ability.

_____ You have compared several potential annuity options prior to making a purchase decision.

_____ You know where to go if you need any additional information about the annuity.

Do You Still Have Questions About Buying an Annuity?

While annuities may be somewhat similar in structure, these financial vehicles can also differ a great deal from one another. So, if you still have any questions about buying an annuity, we’re here to help.

At Annuity Gator, our mission is to educate consumers and financial professionals about how annuities work, and where they may – or may not – fit into a particular portfolio, based on risk tolerance, time frame, and specific short and long-term objectives.

So, feel free to reach out to us by phone at (888) 440-2468 or via email by going to our secure online contact form. We look forward to assisting you with planning your ideal retirement.

An Annuity Buyer’s Checklist Can Be Beneficial

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