Annuities for Retirement Income
Annuities that protect your principal and pay you for life.
You spent forty years building your savings. The next job is making them last. I help people near or in retirement compare annuities side by side, in plain numbers, so the decision is clear and it is yours.
Book an Annuity Review30 minutes. No cost. No obligation. Licensed in New Jersey, Colorado, Florida, and Texas.
The Short Answer
What is an annuity?
An annuity is a contract with an insurance company. You hand over a sum of money, and the company promises something specific in return: a fixed interest rate, protection from market losses, an income that lasts as long as you do, or a combination of the three.
That is the whole idea. You trade some flexibility for a promise. Whether the trade is a good one depends on the terms of the contract and the strength of the company making the promise, and both can be checked before you sign.
Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are not bank deposits and are not FDIC insured.
Your Options
Three types of fixed annuity, and what each one is for
All three keep your principal out of the market. They differ in what they give you back.
| Type | What it does | Often fits | The trade-off |
|---|---|---|---|
| Multi-year guaranteed annuity (MYGA) | Pays a fixed interest rate for a set term, commonly three to ten years. | Money you want safe and earning a known rate, much like a CD. | Withdrawals above the contract's free amount trigger surrender charges during the term. |
| Fixed index annuity | Credits interest tied to a market index, up to a cap. A floor means a down year credits zero instead of a loss. | Savings you want out of the market's reach, with room to grow. | Gains are capped, and the surrender period often runs seven to ten years. |
| Fixed index annuity with an income rider | Adds a guaranteed lifetime income you can switch on later. Payments continue even if the account value runs out. | Covering the gap between Social Security and your essential bills. | The rider carries an annual fee, and income terms vary widely from carrier to carrier. |
An Honest Fit Check
Who an annuity fits, and who it does not
It may fit if
- You are within ten years of retirement, or already there.
- You want part of your savings where a market drop cannot touch it.
- You worry more about running out of money than about beating the market.
- You have other money set aside for emergencies.
It probably does not if
- You expect to need this money in the next few years.
- It would be most of your liquid savings.
- You want full market upside and can live with the swings.
- You have no emergency reserve yet. Build that first.
Why Work With Me
How I compare annuities
I spent my career in fixed income before I founded Lòture Financial. At Lehman Brothers I led the fixed income and foreign exchange strategy team, ranked in the top three of the Institutional Investor survey for nearly a decade. That work came down to one question: can this institution keep its promise?
An annuity deserves the same question. So every comparison I build runs through four checks, in this order.
Carrier strength
I start with the insurer's AM Best rating and its record of paying claims. The rate comes second.
The rate against the rating
A higher rate from a lower-rated carrier is a trade. Sometimes it is worth making. You should see exactly what you are being paid to accept.
The exit terms
How long the surrender period runs, what it costs to leave early, and how much you can take out each year without a charge.
The income math
If you want lifetime income, I compare what each carrier would pay you at the age you plan to start, after the rider fee.
You get the result on one page: the strongest options side by side, in dollars. Read my full story.
How It Works
Three steps. No pressure at any of them.
1. A conversation
Thirty minutes on what this money has to do for you, when you will need it, and what you already have in place.
2. A comparison
I pull current options from several carriers and put the best of them on one page, with every cost and term spelled out.
3. Your decision
You take the time you need. If an annuity is the wrong tool for your situation, I will tell you so.
Straight Answers
Annuity questions people ask me most
What can an annuity do that my portfolio cannot?
Two things. It can pay you an income for as long as you live, however long that is, and a fixed annuity can protect your principal from a market drop. A portfolio can grow faster in good years, but it cannot promise either one. Many retirees use both: an annuity for the income they must have, and investments for growth.
Are annuities safe?
Fixed annuities are built for safety. Your principal is protected from market losses, and the guarantees are backed by the insurance company that issues the contract. That is why I look at a carrier's AM Best rating and its history before I look at its rate. Annuities are not bank deposits and are not FDIC insured.
How much of my savings should go into an annuity?
Enough to do a specific job. A common approach is to add up your essential monthly expenses, subtract Social Security and any pension, and use an annuity to cover the gap. The rest of your savings stays invested and available.
Can I access my money?
Yes. Many contracts let you withdraw up to 10% of the value each year with no charge, and lifetime income options pay you on a schedule you choose. Larger withdrawals during the surrender period, often three to ten years, carry a charge that declines over time. Withdrawals of earnings before age 59½ may also owe a 10% federal tax penalty.
How are annuities taxed?
Growth inside an annuity is tax deferred, so your interest compounds without a yearly tax bill. When you take money out, the earnings are taxed as ordinary income. If you bought the annuity with after-tax money, your original deposit comes back to you tax free. Money from an IRA or 401(k) keeps its usual rules. I am not a tax advisor, so confirm your own situation with yours.
What happens to my annuity when I die?
The remaining value goes to the beneficiaries you name, usually without probate. Many contracts let a surviving spouse who is the sole primary beneficiary continue the contract in their own name. With lifetime income options, what remains depends on the payout choice you make, and I walk you through those choices before you pick one.
Is a MYGA better than a CD?
It can be. Both pay a fixed rate for a set term, and a MYGA defers tax on the interest until you withdraw it. A CD is FDIC insured and is usually easier to exit early. The right choice depends on the rate gap, the term, and when you will need the money.
What does an annuity review cost?
Nothing. The review is free and carries no obligation. If you buy an annuity, the insurance company pays me a commission, and it is not deducted from your deposit. You see options from several carriers side by side, in writing.
Further reading from independent sources: the NAIC Buyer's Guide for Deferred Annuities and IRS Topic 410, Pensions and Annuities.
More from Lòture: how a fixed index annuity works, sequence of returns risk, and retirement income planning.
The Next Step
See your options side by side.
Thirty minutes. Your numbers, a few strong carriers, one clear page. Then you decide.
Book an Annuity ReviewPrefer to call? (551) 305-3385
Michael Trefel is a licensed insurance producer in New Jersey, Colorado, Florida, and Texas. Annuities are insurance products. They are not bank deposits and are not FDIC insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
Withdrawals may be subject to surrender charges, ordinary income tax, and, before age 59½, a 10% federal tax penalty. Product features, rates, and availability vary by state and by carrier. This page is general education and is not tax, legal, or investment advice.
FOLLOW US
COMPANY
CUSTOMER CARE
LEGAL
50 E Ridgewood Ave, Suite 220 Ridgewood NJ 07451
(551) 305-3385 | [email protected]
Copyright 2026. LOTURE FINANCIAL. All Rights Reserved.