Do Annuities Make Sense for You or Just a Clever Sales Pitches?

Written By Michael Custer

In this episode, Michael Custer, CFP®, EA, unpacks annuities in plain English, no sales pitch attached. While he admits they’re not his favorite financial tool, he takes a candid look at what annuities are and how they work.

You have probably seen commercials, gotten dinner invites, or maybe even own one yourself. Annuities spark a lot of curiosity, and today we dig into what they really are, when they may make sense or not, and why the fine print matters.

What we explore in this episode:

💭 What annuities actually are and why they show up so often in retirement conversations

💭 The simple breakdown of fixed annuities vs variable annuities

💭 How annuitizing works and how to figure out your break even point

💭 The fine print people miss: cap rates, participation rates, riders, and fees

💭 Why surrender charges can surprise people and how free withdrawals work

💭 When an annuity may genuinely make sense for someone

💭 How to compare an annuity to your other planning options so you choose what truly fits your goals

Michael Custer

Michael graduated from Hope College where he played Quarterback for the football team. Now, he focuses on tax strategies, helping W-2 employees and small business owners with implementing tax strategies, learning their choices with old work retirement plans, and Roth IRAs. He has a passion for building a relationship with his clients. Understanding why money matters to you is important to him. He firmly believes that finances can be a powerful tool for your life goals.

Michael is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and also holds his Series 7, Series 66, Series 24. and SIE registrations with LPL Financial as well as his Life, Health, Property and Casualty insurance licenses.

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