Annuity Education

Annuities get a bad reputation — sometimes fairly, sometimes not. There are certainly poorly designed annuity products out there, sold by people who prioritized their commission over the client’s needs. But there are also excellent annuity products that have genuinely changed the retirement picture for thousands of Ohio families.

The antidote to confusion is education. Once you understand how annuities actually work — the mechanics, the fees, the guarantees, the tradeoffs — you can evaluate them clearly rather than accepting someone else’s blanket opinion.

Starting Points

If you’re new to annuities, start with the basics: a fixed annuity is essentially a savings vehicle with a guaranteed interest rate. An income annuity converts a lump sum into monthly payments for life. An indexed annuity sits in between — principal protection with interest tied to a market index. A MYGA locks in a guaranteed rate for a specified number of years, similar to a CD.

Each type serves a different purpose, and the right one depends entirely on your situation. Our annuity education pages walk through each type in detail, including who they tend to work well for, what to watch out for, and questions you should ask any advisor who recommends one.

Red Flags to Know

Be cautious of any annuity with surrender periods longer than 7 years without compelling reason, any product where the advisor can’t clearly explain every fee, and any situation where you’re being rushed into a decision. A good annuity is still a good annuity a week later. There’s never a reason to decide today.