Pros & Cons

A Balanced Look at Annuity Strategies

Annuities offer powerful benefits alongside important considerations. Use this comparison to clarify where they shine and where you'll want professional guidance, then connect with Makonnen to see how annuities fit into a broader Wealth Store Financial plan.

Reminder: annuities are optional—your plan may also include insurance protection, mortgage strategy, and other retirement income tools depending on your goals.

Benefits that attract retirees

Principal protection
Insurance guarantees can keep your original premium intact even when markets fluctuate.
Secure, guaranteed income
Turn retirement assets into a dependable paycheck that complements Social Security and pensions.
Long-term care riders
Optional benefits can increase payouts if you face a qualifying health event, helping cover care expenses.
Legacy benefits
Beneficiary features help you pass remaining value—or continued payments—to loved ones.
Tax-deferred growth
Earnings compound without current taxation, so more of your money stays invested until withdrawal.

Considerations to weigh carefully

Fees and rider costs
Mortality and expense charges, administrative fees, and rider costs can reduce net returns if not managed carefully.
Surrender schedules
Early withdrawals often trigger penalties, so annuities work best with multi-year commitments.
Limited liquidity
Access to premiums is typically restricted beyond free-withdrawal amounts, which can be challenging if you need cash.
Inflation pressure
Fixed payouts may lose purchasing power unless you add cost-of-living adjustments or growth features.
Complex fine print
Different carriers use unique crediting formulas and rider terms. Reviewing them with an advisor is essential.

Let's make sure the benefits win

Makonnen helps you evaluate costs, liquidity, and the income strategy so annuities support your lifestyle without surprises. Bring your statements or questions—we'll review them alongside life insurance, mortgage, and retirement goals.

Talk With Makonnen

Clarity before commitment

We walk through the trade-offs together so you understand how annuity options impact liquidity, legacy, and long-term income. The goal is a plan you can explain to your family with confidence.

A Balanced Look at Annuity Strategies

Reminder: annuities are optional—your plan may also include insurance protection, mortgage strategy, and other retirement income tools depending on your goals.

Benefits that attract retirees

Principal protection

Insurance guarantees can keep your original premium intact even when markets fluctuate.

Secure, guaranteed income

Turn retirement assets into a dependable paycheck that complements Social Security and pensions.

Long-term care riders

Optional benefits can increase payouts if you face a qualifying health event, helping cover care expenses.

Legacy benefits

Beneficiary features help you pass remaining value—or continued payments—to loved ones.

Tax-deferred growth

Earnings compound without current taxation, so more of your money stays invested until withdrawal.

Considerations to weigh carefully

Fees and rider costs

Mortality and expense charges, administrative fees, and rider costs can reduce net returns if not managed carefully.

Surrender schedules

Early withdrawals often trigger penalties, so annuities work best with multi-year commitments.

Limited liquidity

Access to premiums is typically restricted beyond free-withdrawal amounts, which can be challenging if you need cash.

Inflation pressure

Fixed payouts may lose purchasing power unless you add cost-of-living adjustments or growth features.

Complex fine print

Different carriers use unique crediting formulas and rider terms. Reviewing them with an advisor is essential.