In this episode, Michael Custer, CFP®, EA, unpacks annuities in plain English, no sales pitch attached. While he admits they’re not his favorite financial tool, he takes a candid look at what annuities are and how they work.

You have probably seen commercials, gotten dinner invites, or maybe even own one yourself. Annuities spark a lot of curiosity, and today we dig into what they really are, when they may make sense or not, and why the fine print matters.

What we explore in this episode:

💭 What annuities actually are and why they show up so often in retirement conversations

💭 The simple breakdown of fixed annuities vs variable annuities

💭 How annuitizing works and how to figure out your break even point

💭 The fine print people miss: cap rates, participation rates, riders, and fees

💭 Why surrender charges can surprise people and how free withdrawals work

💭 When an annuity may genuinely make sense for someone

💭 How to compare an annuity to your other planning options so you choose what truly fits your goals

Stay curious and enjoy the episode.

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

Chapters:

00:00 Introduction to Annuities

00:52 What are annuities?

01:45 Who May Like an Annuity?

02:45 What Are Annuities?

03:41 What's Your Break Even Point with an Annuity?

04:52 Ways People Buy an Annuity

05:49 Understanding Fixed Annuities

06:38 Understanding variable annuities

08:37 Understand Your Annuity Surrender Schedule

10:38 Free Surrender Period Amounts

11:34 Have We Thought of All Our Options?

13:31 Youtube Disc. TN & Words.mp4

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.