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Buying an Annuity for the First Time?

Annuity Alliance helps consumers nationwide by connecting them with a licensed professional who can review their retirement planning strategy and provide multiple options to align with their best interests. Everyone is different. Top-rated insurance carriers understand those needs and try to develop annuities geared toward their plans.

Have you purchased an annuity? Then you probably know the drill as you’ve been through this easy process before. If you haven’t bought an annuity, you may want to read a few steps below, so you are prepared and ready to talk to a licensed professional.

  • What are you trying to do? The first step in buying an annuity is having a plan for your retirement. Are you looking for guaranteed income, income with growth potential, or access to principal? You need to consider your retirement accounts, assets, and future needs (long-term care, legacy, Medicare, etc.) when calculating your retirement “number.” If you have this information in hand, a licensed professional can review this information to get to the next step.
  • Connect with a Licensed Professional. Annuity Alliance is connected to agents and advisors nationwide who can provide guidance for your retirement strategy. Licensed agents can review annuity products with you from top-rated insurance carriers to determine how an annuity can fit into your plan. Financial advisors with proper licensing also can review your financial plans (IRA, 401k, etc.) and discuss options with you for those funds. If you aren’t sure which carrier/product to choose from, your licensed professional can run an annuity illustration comparing multiple products’ performance and benefits.
  • Complete the Application from the Selected Carrier. When purchasing an annuity, each carrier has a specific application process that can take multiple days based on each carrier’s process. The most important part is working with your licensed professional to fully complete this document correctly. If rolling over from an IRA/401(k), the process may take additional processing time. As needed, contact your agent or advisor for updates as they will track the transaction through all the steps.
  • Transfer the Money. You have multiple options to pay for your selected annuity. Most carriers accept cash, cashier’s check, personal check, or transfer from retirement funds. If you decide to rollover from a retirement account, the amount could have tax implications. Please consult with your tax advisor.

Once the application is completed in “good order” and the carrier approves, you will receive documentation about your selected annuity from the insurance carrier. Most carriers also have an online resource to track your annuity on a monthly or annual basis (depending on what type of annuity you choose). If you have any questions, you can contact your licensed professional for updates.

Ready to purchase an annuity in 2021? Contact Annuity Alliance to get connected to a local financial professional to set up a virtual or in-person meeting.