Annuity agent · Sacramento, CaliforniaIncome you cannot outlive.
A contract with an insurance company that turns a lump sum into a payment that continues for as long as you are alive — the one instrument built specifically against the risk of living a long time. Lifetime income requires electing an income option or rider, and every guarantee rests on the issuing carrier's claims-paying ability.
A portfolio can be drawn down badly in the wrong five years. An annuity moves that risk to the carrier: you hand over a premium, the contract defines what comes back and for how long, and the obligation does not end because the market had a decade you did not plan for.
Rates, surrender periods and income riders vary widely between carriers for the same money. I shop the whole shelf and show you what each contract actually pays — including what it costs you in liquidity to get there. Every recommendation is documented to California's best-interest standard, in effect since January 2025.
Money that lands here
401(k) / TSP rolloverAt retirement
Property or business saleProceeds
CD or savingsSeeking a rate
InheritanceThat has to last
Pension lump sumvs. the monthly
Annual withdrawal~10% / yr typical
Penalty age59½ · IRS
Mechanics · 01 — 04
§ 02How it runs
The four kinds, plainly
Which one fits comes down to two questions: when does the income need to start, and how much of it has to be guaranteed.
01
Multi-year guaranteed
A fixed rate locked for a set term — the closest thing to a CD inside an insurance contract, with tax deferral while it sits.
02
Fixed indexed
Credited off an index with a floor of zero and a cap or participation rate. Principal is not exposed to market loss; the upside is limited.
03
Immediate
Income starts within about a year of the premium. The highest payout per dollar and the least flexibility — the money is committed.
04
Deferred income
Fund it now, switch income on at a chosen age. Waiting raises the payout, often through a rider with its own annual fee.
Fit · and the trade
§ 03Judgment
This fits you if
You are within about ten years of needing the money to produce income.
Social Security and any pension do not cover your fixed monthly expenses.
A bad sequence of market years early in retirement would genuinely change your life.
You can leave the premium alone through the surrender period.
What you have to weigh
Surrender charges apply for a defined period; most contracts allow about 10% a year out without them.
Income riders carry annual fees, and the “income value” they quote is not a walk-away balance.
Withdrawals before 59½ can carry a 10% federal penalty on top of ordinary income tax.
Every guarantee rests on the carrier's claims-paying ability, so the carrier's strength matters as much as the rate.
Data · sourced
§ 04Reference
$464Bplaced in U.S. annuities in 2025 — a fourth straight record.LIMRA · 2025 sales
30 dto review and return it, for California buyers 60 and over — full refund.Cal. Ins. Code §10127.10
59½before which withdrawals may incur a 10% federal penalty.IRS · Topic 410
8 hof annuity training before a California agent's first sale; 4 h each renewal.Cal. Ins. Code §1749.8
Rates move with interest rates and differ by carrier, term, product type and amount, so any number printed here would go stale. When we talk I pull current quotes from several carriers and put each one's surrender schedule and any rider fees on the same page.
Q · 02
Can I lose money in a fixed or fixed indexed annuity?
Market losses are not passed into a fixed or fixed indexed annuity, and an index credit cannot fall below zero. You can still get back less than you put in if you surrender early and pay surrender charges or a market value adjustment, or if rider fees are larger than the interest credited. Every guarantee rests on the issuing carrier's claims-paying ability, and annuities are not FDIC-insured.
Q · 03
Can I move a 401(k), 403(b) or TSP into an annuity?
Often, once you have left the employer, and some plans also allow in-service rollovers. It is usually done as a direct rollover into an IRA annuity so no tax is withheld. Whether you should depends on what your plan offers, the costs on both sides and how much of the money you need to keep liquid. I document the comparison; your tax adviser should confirm the tax treatment.
Q · 04
How long is my money tied up?
For the surrender period written into the contract, which varies by product. Most contracts let you take out about 10% a year without a surrender charge. Withdrawals before age 59½ can also carry a 10% federal tax penalty on top of ordinary income tax.
Q · 05
Which kind of annuity is right for me?
It comes down to when the income has to start and how much of it must be guaranteed. A multi-year guaranteed annuity suits money that needs a fixed rate for a set term; immediate and deferred income annuities suit a paycheck; fixed indexed annuities sit between the two. The four kinds are laid out above.
Q · 06
How are you paid?
By a commission from the insurance company that issues the contract. You do not pay me a separate fee. A written disclosure of my compensation and the basis for my recommendation is available on request.
A private conversation · no fee · twenty minutes
What would your money actually pay?
Tell me the amount, your age, and when the income needs to start. I will come back with quotes from several carriers, with the surrender schedule and rider fees on the same page.