Randy Eschels photo

Randy Eschels, CLU, ChFC, CFP®


Eschels Financial Group, Inc.

555 S Old Woodward Avenue, Suite 612

Birmingham, MI 48009


Phone:  248-644-1144


Fax:      248-644-7820 


Email: randy@eschelsfinancial.net

Website: www.efg-ida.com

May/June 2020

Annuities for Longer Life

Annuities for Longer Life

Fewer Americans can count on a guaranteed retirement income these days other than social security benefits, which are little more than a safety net. A fixed annuity* can help offer this certainty, but some financial consumers don’t want to tie up all of their retirement money in one place. For these people, converting a portion of 401(k) plan or IRA balances to a fixed annuity may make more sense. There are a couple of ways to do this.

A Matter of Time
Annuity income payments can begin in one of two ways. An immediate annuity begins payments to you immediately, as its name implies, and a deferred annuity begins paying you at a future date. You get the annuity’s guaranteed interest rate credited to your account balance during the accumulation phase, then receive a fixed income payment based on the rate, when payments begin, and the length of the annuity contract.

Varied Options
Because time is so important, how and when you structure your annuity payments will matter, with longer terms resulting in lower periodic payments. So you might buy an immediate annuity by partially converting other retirement money, leaving open the possibility of converting more at a later date if needed. Or you might purchase a deferred annuity that begins payments in 10 or more years, increasing the accumulation phase and reducing the payment term. You can use other money to purchase a deferred annuity at any time, even long before retirement, giving your annuity more time to potentially grow.

Annuities are complicated, but they can help improve your financial readiness in retirement. Work with an insurance professional who can help you make the appropriate choice.

*Fixed annuity contracts guarantee a minimum credited interest. For immediate fixed annuity contracts, annuitants receive a fixed income stream based, in part, on the interest rate guarantee at the time of purchase. Annuity products are not FDIC-insured, and their contract guarantees are backed solely by the claims-paying ability and strength of the issuing life insurance company. Withdrawals prior to age 59 ½ may result in a 10% federal tax penalty, in addition to any ordinary income tax.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Investment Advisor Services offered through Investment Advisors, a Registered Investment Advisor and a division of ProEquities, Inc. Securities offered through ProEquities, Inc., a Registered Broker-Dealer, Member FINRA & SIPC. Eschels Financial Group, Inc. is independent of ProEquities, Inc. Eschels Financial Group, Inc. and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.