Annuities and Retirement Income in Brighton, CO

What to know before you choose

There are a few main types. A fixed annuity credits a declared interest rate for a set period. A fixed indexed annuity credits interest based partly on a market index, with a floor that protects your principal from index losses, subject to caps or participation rates. An immediate income annuity turns a lump sum into payments that start right away, for life or a set period. Deferred income annuities start payments later. Guarantees depend on the claims paying ability of the insurance company.

Surrender charges are the trade-off. Most deferred annuities charge a fee if you take out more than a set free withdrawal amount in the early years, often several years. That is why an annuity should hold money you will not need for emergencies. I show you the surrender schedule, in dollars, before you decide.

The Colorado Division of Insurance suggests questions to ask before buying any annuity, and I answer them in writing: the guaranteed minimum interest rate; what charges are deducted and when; the surrender charges and how long they last; whether you can make partial withdrawals without charges; whether charges are waived for a nursing home stay or terminal illness; your income options; the death benefit; the risks to your earned interest; and my commission. For indexed annuities, add the participation rate and how long it is guaranteed (Colorado DOI).

Taxes matter too. Growth in a deferred annuity is generally tax deferred until withdrawn. Annuities held inside an IRA follow IRA rules, including required minimum distributions that generally begin at 73 (IRS). I am not a tax advisor, so we bring your accountant in where it matters.

Your needs and situation are unique, and I am committed to spending the time to get to know you so you get coverage and support that fits your lifestyle.

Colorado rules to know

Colorado requires annuity recommendations to be in your best interest. Under Colorado Regulation 4-1-11, in effect since November 1, 2022, an agent must have a reasonable basis to believe an annuity fits your financial situation, insurance needs and objectives over the life of the product, disclose conflicts of interest and document the recommendation, and the insurance company must review it before issuing (Colorado DOI).

This page covers fixed and fixed indexed annuities, which are insurance products. Variable annuities are securities and are outside this review.

How and when to enroll

1. Start with a retirement planning review so we know the income gap and the money that should stay liquid.
2. I complete a best interest review with you: income, assets, goals, time horizon and need for access to money.
3. You get the contract details in writing, including surrender schedule and charges, before you sign.
4. After issue, read the contract during its free look period and call me with any questions.

Common mistakes to avoid

• Putting emergency money into a contract with multi-year surrender charges.
• Comparing headline rates without reading caps, participation rates and fees.
• Replacing an existing annuity and paying a new surrender charge without a clear benefit.
• Treating an annuity as an investment account. It is an insurance contract with guarantees and limits.

How Lisa helps

• Fixed, fixed indexed and income annuities explained in plain English
• Surrender charges and fees shown in dollars, not percentages alone
• A Colorado best interest review documented with you
• Income options compared: lifetime, joint life or a set period
• Coordination with your Social Security and Medicare timeline
• A yearly review of statements and options

Who it fits

You are near or in retirement, want part of your savings to provide guaranteed growth or income you cannot outlive, and have other money set aside for emergencies.