Annuities
Annuities, explained without the sales pitch
An annuity is a contract with an insurance company. Sometimes that’s exactly the right tool. Sometimes it’s an expensive answer to a question you don’t have. This section is about telling the difference.
The one-minute version
You give an insurance company money. In exchange, they promise you something — either a lump sum later, or a stream of income, often for as long as you live. That’s the whole idea. Everything else is variation: how the money grows, what the income looks like, how long you have to wait, and what happens if you change your mind.
Fixed rate annuities
A set interest rate for a set period. Simple, predictable, easy to compare to a CD.
Fixed rate
Fixed indexed annuities
Growth tied to an index with a floor of zero. Upside is capped; downside is protected.
Fixed indexed
Income benefits
Riders that convert a lump sum into a guaranteed lifetime paycheck, at a cost.
Income riders
Fixed vs. variable
Why these two products are regulated differently and behave very differently in a downturn.
Fixed vs. variable
Is one right for you?
The four situations where an annuity earns its place — and the three where it doesn’t.
Is it right for you?
Free annuity guide
A plain-English PDF covering the types, the fees, and the questions to ask before you sign.
Get the guide
Why “guaranteed” needs an asterisk
Every guarantee in an annuity is backed by the insurance company that issued it, not by the government and not by me. That’s why the rating of the insurer matters more than the brochure. When we look at one together, we start with the company, not the illustration.
Important
Guarantees are subject to the claims-paying ability of the issuing insurance company. Annuities are insurance products, not investments; they are not FDIC insured and are not guaranteed by any bank or government agency. Withdrawals before age 59½ may be subject to a 10% federal tax penalty in addition to ordinary income tax.
Annuities are sold through Scott Jason Thiel as a licensed insurance producer in Oregon. Ohlson Group LLC is an independent insurance marketing organization and is not affiliated with Encompass More Asset Management LLC. Advisory services are offered separately through Encompass More.
Not sure whether an annuity fits?
That’s exactly what the first conversation is for.