Weekend Reading: 5 Types of Clients Who Should Consider Annuities

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading 5 types clients to consider annuities Weekend reading 5 types clients to consider annuities
Weekend Reading

While annuities have faced their share of criticism over the years, the reality is, these investment vehicles have the power to help address some of the biggest financial concerns: Fear of outliving your money, becoming a burden to your children or lacking coverage in critical care situations.


As such, different types of clients may benefit from incorporating annuities into their portfolios, including:

📌 Retirement savers: Annuities can provide a reliable income stream during retirement, acting as a form of longevity insurance.

📌 Conservative investors: Those with low-risk tolerance may appreciate the stable and predictable returns offered by annuities, protecting against market volatility.

📌 Tax-efficient investors: Annuities can provide tax advantages, allowing for tax-deferred growth and potential tax savings. However, annuity withdrawals may be subject to taxes.

📌 Estate planners: Annuities with death benefit options can ensure a guaranteed payout to beneficiaries.

📌 Asset diversifiers: Incorporating annuities alongside other investment vehicles can help diversify sources of income and create a balanced portfolio.

If you’ve let bias get in the way of being open to annuities prior, take some time to do your research. Explore how the pros and cons apply to your unique financial situation, whether that be on your own or by partnering with a professional.