Depending on your needs, annuities may be a good addition to your financial plan.
Income annuities may be a fit if you’re seeking a guaranteed, steady stream of income you can’t outlive. The guaranteed lifetime income may help cover essential expenses in retirement, as defined by you, regardless of how long you live. If you need income “immediately”, a single premium immediate annuity may be right for you. If you need income in the future, a deferred income annuity may be more appropriate.
Fixed deferred annuities may be a good fit if you are looking for guaranteed growth, principal protection, and have other funds for liquidity needs (at least three to ten years).
Fixed indexed annuities allow you to protect your principal with the opportunity to generate market-capped growth, and may provide protection of lifetime income for you and your spouse with an optional guaranteed lifetime withdrawal benefit,3 available for an additional cost. Additionally, fixed indexed annuities provide the potential for tax-deferred investment growth and, with an optional death benefit, may provide you with the confidence in knowing your assets are protected for your beneficiaries.4
Variable annuities provided through Schwab offer competitive pricing, with no surrender charges² and base annuity fees that are 30%-60% below the industry average1. For an additional cost, an optional living benefit can provide guaranteed lifetime income based on your original investment or annual gains or, depending on the annuity and rider elected, the opportunity to increase your future income for up to ten years while you prepare for retirement. Finally, variable annuities provide the potential for tax-deferred investment growth, and, with an optional death benefit, may provide you with the confidence in knowing your assets are protected for your beneficiaries4.
A Schwab Annuity Specialist can help you determine which annuities would fit your financial plan. If you already have an annuity and feel it may not be meeting your current needs, a Schwab Annuity Specialist can perform an analysis to determine whether it may make sense to exchange your current annuity with one at Schwab.
Before deciding to replace your existing contract, however, please consider any surrender charges on your existing contract; possible loss of guaranteed benefits; differences in features, costs, services, and company strength; and other factors which could reduce or eliminate the benefit of the exchange.