Annuity Basics

Annuity suitability: Factors, rules, rights, and protections ensure appropriate recommendations. Investors must be informed and proactive.

Annuities: Pros and cons for retirees. Fixed annuities offer stability, while variable annuities have higher potential returns but more market risk. Consider individual needs and goals when choosing.

Annuities for pre-retirees: Understand the types (fixed, variable, indexed), benefits, risks, and suitability. Seek professional advice.

Annuities for guaranteed income: Understand types, benefits, risks. Assess individual needs and work with an advisor for informed decisions.

Annuities can be taxable, with taxes applied to payouts and early withdrawals. Strategies like spreading payouts and choosing non-qualified annuities can minimize tax impact.