Annuities
An annuity is a financial product designed to provide a steady, reliable stream of income — either immediately or at a future date you choose. It is one of the most powerful tools available for retirement planning and long-term financial security.
At Goodmen Life we help families understand and access both Fixed and Variable annuities — matching the right product to each client's unique retirement goals, timeline, and risk tolerance.
What Is an Annuity?
An annuity is a contract between you and an insurance company. You make a lump sum payment or a series of payments, and in return the insurer provides regular income payments to you — starting immediately or at a future date. Here is why families choose annuities.
An annuity can provide income payments that last for a set number of years or for the rest of your life — no matter how long you live. This eliminates the risk of outliving your savings, one of the biggest fears in retirement.
Your money grows inside an annuity on a tax-deferred basis — meaning you do not pay taxes on the growth each year. This allows your savings to compound more efficiently over time compared to a standard taxable investment account.
Annuities are designed specifically for retirement. They complement Social Security, 401(k) plans, and other retirement accounts by providing an additional guaranteed income source that you control — on your own timeline.
Your Options
Both types of annuities provide income in retirement. The difference is in how your money grows before payouts begin. Understanding the distinction helps you choose the right strategy for your goals.
Fixed Annuity
A Fixed Annuity earns a guaranteed interest rate during the accumulation phase. Your principal is protected, your growth is predictable, and your future income is locked in. Ideal for clients who want certainty above all else.
• Guaranteed fixed interest rate — no market exposure
• Principal is fully protected at all times
• Predictable, steady income payments in retirement
• Tax-deferred growth during accumulation phase
• Best for conservative investors near or in retirement
Learn More About Fixed AnnuitiesVariable Annuity
A Variable Annuity allows your money to be invested in sub-accounts similar to mutual funds. Your growth potential is higher but your value can fluctuate with market performance. Best for clients with a longer time horizon and higher risk tolerance.
• Investment sub-accounts tied to market performance
• Higher growth potential over the long term
• Optional riders available for income guarantees
• Tax-deferred growth during accumulation phase
• Best for growth-oriented investors with longer timelines
Learn More About Variable AnnuitiesWho Annuities Are For
Annuities are not one size fits all. Here are the types of clients who benefit most from adding an annuity to their retirement strategy.
If you are 10 to 20 years from retirement, an annuity gives your money time to grow tax-deferred before converting to a reliable income stream exactly when you need it. Starting early locks in more favorable terms and higher payouts.
If you are already retired or close to it, an immediate annuity can begin generating income right away. It is an ideal solution for converting a lump sum — from a 401(k), IRA, or savings — into a predictable monthly income you cannot outlive.
Self-employed individuals and business owners often lack access to employer-sponsored retirement plans. An annuity fills that gap — providing a structured, tax-advantaged way to save for retirement and generate guaranteed income on your own terms.
FAQ
Have more questions? We are happy to walk you through everything in a free no-pressure consultation.
Book a Free CallA Fixed annuity earns a guaranteed interest rate and your principal is fully protected. A Variable annuity is invested in market sub-accounts with higher growth potential but also more risk. The right choice depends on your timeline, risk tolerance, and retirement goals.
It depends on the type of annuity you choose. An immediate annuity begins paying income shortly after your initial contribution — typically within 30 days. A deferred annuity allows your money to grow for a set period before income payments begin, which you schedule based on your retirement timeline.
Generally, the portion of each annuity payment that represents growth or earnings is taxable as ordinary income. The portion representing your original after-tax contributions is not taxed again. If your annuity was funded with pre-tax dollars such as from a 401(k), the full payment is typically taxable. We recommend consulting a tax advisor for your specific situation.
Most annuities allow partial withdrawals during the accumulation phase, though early withdrawals may be subject to surrender charges and a 10% IRS penalty if taken before age 59 and a half. Many policies allow a free withdrawal of up to 10% per year. We will explain all terms clearly before you commit to anything.
Many annuities include a death benefit that passes the remaining value to your named beneficiaries. The exact terms depend on the policy and any riders you choose. Some annuities guarantee that your beneficiaries receive at least the amount you contributed, regardless of market performance.
Minimum investment amounts vary by carrier and product, but many annuities can be started with as little as $5,000 to $10,000. During your free consultation we will review the options that fit your budget and retirement timeline so you can make an informed decision.