Is An Annuity Right for You?

What is your strategy for minimizing taxes in retirement?

I have a coordinated strategy that optimizes my use of tax-efficient accounts and times my withdrawals from those accounts to minimize my tax bill.

I have a general plan to use tax-efficient accounts and products, but it’s not very specific.

I don’t have a tax strategy. Do I still have to pay taxes after I retire?

How much of your retirement income is guaranteed* for life?

A good amount. I have Social Security, a pension, and I have plenty of assets to provide income for life.

I have Social Security and a pension. I also have retirement savings, but the withdrawals aren’t guaranteed and I’m not sure how long those funds will last.

I only have Social Security as a form of guaranteed income. I’ll have to rely on savings for any additional income.

When do you plan on taking retirement income?

Immediately

Less than 5 years

More than 5 years

What is your sensitivity to volatility and market fluctuation?

I have a high tolerance for risk. I understand that risk and return often go hand-in-hand. I’m willing to take some risk in order to get growth.

I have a moderate risk tolerance. While I understand I may need some risk exposure, I would like to limit risk as much as possible.

I have little-to-no tolerance for risk. I don’t want to experience market losses in retirement.

What is your plan for dealing with inflation?

I have a strategy to manage my budget and gradually increase my retirement account distributions to account for inflation.

I’m hoping my retirement accounts grow enough to pay for increasing costs.

I don’t know if I’ll be able to increase my retirement income to account for inflation.

How much impact will probate costs have on your estate?

Not much. I have implemented strategies like trusts, qualified accounts, insurance, and more to limit the impact of probate costs.

Probate will have some impact. I have some assets that will avoid probate, but others that may not.

I’m not sure. I haven’t developed a plan to minimize probate costs.

Do you have liquid assets you could use in the event of an emergency?

Yes. I have a substantial assets allocated for both long-term goals and short-term emergencies.

I have a moderate amount of savings - enough to handle most emergencies.

Not much. I’m mostly dependent on Social Security and a limited amount of savings.

How concerned are you about outliving your savings?

Not terribly concerned. I believe I have enough assets to fund a long retirement.

Somewhat concerned. I think I have enough savings to fund a long retirement, but it could be difficult if I suffer investment losses or have sizable unplanned expenses.

I am very concerned that my assets won’t last through retirement.

If you pass away before your spouse, will he or she have enough income to live comfortably?

Yes, we have an income strategy in place to provide income for the surviving spouse.

I believe so, but he or she may need to live on a tight budget.

I’m worried that he or she wouldn’t have much income after my death.

Not applicable.

Do you have a cash value in an annuity or permanent life insurance policy that is out of its surrender period?

Yes, I have an old annuity or life insurance policy that has substantial cash value.

No, I do not have cash value in an annuity or life insurance policy that is out of its surrender period.

Is An Annuity Right for You?

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