How to Choose an Annuity
The Annuity Man
There are many types of annuities available, but only 2 questions need to be answered when considering the purchase of an annuity. Question #1: What do you want the money to contractually do? Question #2: When do you want those contractual guarantees to start?
From those 2 answers, the correct annuity type can be chosen to provide the contractual guarantees needed for your specific situation and goals. Once that annuity type is determined, then you need to quote all carriers to find the highest contractual number available. Annuity quotes are like a gallon of milk, with quotes expiring every 7 to 10 days. You can lock that quote in permanently by starting the application process to buy the annuity.
I also recommend using an acronym I developed to choose the right annuity type for you. That acronym is P.I.L.L. P stands for principal protection. I stands for income for life. L stands for legacy. L stands for long term care. If you don't need to contractually solve for one or more of those 4 strategies listed within that P.I.L.L. acronym, then you do not need an annuity. It's really that simple.
Between the 2 questions and the P.I.L.L. acronym, you should be able to easily determine if you need an annuity transfer or risk strategy...and if so....what annuity type would best solve for that contractual solution. You always make your buying decision solely on the contractual guarantees of the policy.
You can contact Stan if you have any questions or want to see quotes on your specific situation.