Addressing concerns about retirement income sustainability.

One concern in retirement may be outliving your money. Market downturns, inflation, and longer lifespans have made retirement income planning more complex. Annuities may play a role in this planning—potentially providing income streams that last as long as you do, while offering tax considerations along the way.

At Saltiel Wealth Management in Sarasota, Florida, we provide guidance on annuity strategies for high-income professionals, small business owners, retirees, and high-net-worth families.

Our boutique practice operates from a home-based office, helping us manage overhead so we can focus on understanding your individual income needs, risk tolerance, and tax situation. Whether you’re a retiree looking to convert savings into income, a high-income professional exploring tax deferral strategies, or a business owner diversifying away from company-specific risks, we’ll help you understand how annuities might fit into your comprehensive financial strategy.

Through coordination with your Charles Schwab investment portfolio, annuities may provide stability and tax considerations that complement your other wealth management objectives, potentially creating a more predictable and tax-efficient retirement income approach.

Annuity strategies that may provide more than basic income features.

1. Potential Lifetime Income That May Last As Long As You Live

Exploring options to turn your retirement savings into income streams.

A key feature of annuities may be their ability to provide income for life, regardless of how long you live. This may address what financial planners call “longevity risk”—the possibility that you’ll outlive your savings. With people living longer, this protection may have increased value.

For retirees managing required minimum distributions from retirement accounts, annuities may provide cash flow that helps with Medicare surcharges and Social Security taxation considerations. Unlike market-dependent investments, annuity payments may continue regardless of market conditions.

Important: Annuity guarantees depend on the financial strength and claims-paying ability of the issuing insurance company.

2. Tax-Deferred Growth That May Support Wealth Accumulation

Potentially keeping more of your money working for you longer.

Earnings inside annuities may grow tax-deferred until you withdraw them, allowing your money to potentially compound without annual tax impact. For high-income professionals still working, this might defer income to retirement years when you may be in different tax brackets.

For high-net-worth individuals, annuities may integrate with Roth conversion strategies, potentially providing tax-advantaged growth opportunities. This tax deferral feature might enhance long-term wealth accumulation compared to taxable investment accounts.

Important: Tax treatment depends on individual circumstances and current tax law, which may change.

 

3. Market Protection Considerations Without Eliminating Growth Potential

Exploring participation in market gains while addressing loss concerns.

Fixed and indexed annuities may offer protection against market volatility while still providing growth opportunities. This may be valuable for small business owners who want to separate their personal retirement from business-specific risks.

Indexed annuities, for example, may allow you to participate in market index gains (subject to caps) while providing a floor against losses. This approach might complement more growth-oriented investments in your Charles Schwab portfolio.

Important: Returns are subject to caps, participation rates, and fees that may limit growth potential.

 

4. Customizable Features That May Address Specific Needs

Exploring income strategies for your individual circumstances.

Modern annuities may offer various riders and features that can be customized to your situation:

• Inflation adjustments to potentially help maintain purchasing power over time

• Spousal continuation benefits for married couples

• Long-term care benefits for healthcare cost considerations

• Death benefits for legacy planning objectives

These features may allow you to address multiple financial planning goals within a single product, potentially supporting estate coordination while working with your other professional advisors.

Important: Optional riders involve additional costs and may have limitations and restrictions.

5. Access and Legacy Considerations

Exploring liquidity while building potential income.

Many annuities may provide partial withdrawal options, allowing access to your money for emergencies or opportunities while maintaining income features. Some also offer death benefits to beneficiaries, potentially helping with wealth transfer goals for high-net-worth families.

This flexibility may be valuable when integrated with other estate planning strategies, potentially providing both current income and future legacy benefits.

Important: Withdrawals may be subject to surrender charges, tax implications, and may reduce future income and death benefits.

Different types of annuities for different situations and needs.

Which Annuity Type Might Make Sense for Your Situation?

For Conservative Approaches: Fixed annuities may provide predictable, stable income with principal protection. They might work well for the portion of your portfolio focused on stability rather than growth.

For Growth-Oriented Strategies: Variable annuities may allow market participation while providing tax deferral. They might integrate well with diversified investment strategies when you want growth potential with optional income features.

For Balanced Risk Approaches: Indexed annuities may offer a middle ground—participating in market gains while providing protection against losses. They might work well for investors who want some growth potential without full market exposure.

For Immediate Income Needs: Immediate annuities may provide current income rates and might be suitable for converting a portion of savings into lifetime income immediately.

For Future Planning: Deferred annuities might work well for pre-retirees who want to accumulate tax-deferred savings now and convert to income later.

Important: All annuity types involve fees, limitations, and restrictions that may significantly impact performance and suitability.

Your annuity should work to serve your retirement goals.

Comprehensive Income Needs Analysis

Understanding your complete retirement income picture.

We start by analyzing your total retirement income needs, including Social Security, pensions, investment withdrawals, and other sources. This helps determine what role, if any, annuities might play in your income strategy. The goal is exploring reliable cash flow approaches that may support your desired lifestyle throughout retirement.

Product Comparison and Analysis

Exploring competitive options across multiple carriers.

We work with multiple insurance companies to explore competitive annuity options that may fit your needs and budget. We’ll explain costs, features, surrender periods, and how each option might serve your specific goals.

Important: Annuity product sales may generate commissions, which we will fully disclose.

Tax Strategy Integration

Coordinating your annuity strategy with comprehensive tax planning.

Annuities should be coordinated with your overall financial planning. We work to integrate your annuity strategy with your tax planning, Social Security optimization, required minimum distribution management, and Medicare surcharge planning to help ensure everything may work together efficiently.

Portfolio Integration and Balance

Ensuring your annuity complements your other investments.

Working with your Charles Schwab investment portfolio, we help determine the appropriate allocation between guaranteed income approaches (annuities) and growth investments. The goal is exploring balance between stability and growth potential based on your risk tolerance and income needs.

Ongoing Monitoring and Review

Your annuity strategy may need to evolve with your needs.

Annuity needs may change as your situation evolves. We provide ongoing monitoring to help ensure your annuity continues to serve your goals effectively, including analysis of surrender periods, income timing, and coordination with changing tax laws.

How do annuities help with tax planning? Annuities may provide tax-deferred growth, meaning earnings may compound without annual taxation until withdrawn. This might be valuable for high-income professionals who want to defer income to retirement years when they may be in different tax brackets. Withdrawals are typically taxed as ordinary income.

Important: Tax treatment depends on individual circumstances and current tax law, which may change.

What specific risks do annuities address? Annuities primarily may address longevity risk (outliving your money) and sequence-of-returns risk (poor market performance early in retirement). They may provide income regardless of market conditions or how long you live. Optional riders might also address inflation risk and long-term care costs.

Important: All features depend on the financial strength of the issuing insurance company.

Why should I get guidance for annuities instead of purchasing directly? We explore multiple carriers for competitive rates and features, analyze how annuities might fit with your complete financial plan, and provide ongoing service. Direct purchases may lack comprehensive analysis and integration.

Important: Annuity product sales may generate commissions, which we will fully disclose.

Are annuity fees high, and are they worth it? Annuity fees vary significantly by type and features. Simple fixed annuities may have minimal fees, while variable annuities with multiple riders can be more expensive. The key is understanding what you’re paying for and whether those features provide value for your specific situation.

How do annuities coordinate with my other investments at Charles Schwab? Annuities may provide stability and income that complements growth-oriented investments in your portfolio. The appropriate allocation depends on your income needs, risk tolerance, and other retirement income sources.

Can I access my money if I need it? Most annuities may allow some level of access through partial withdrawals, though there may be surrender charges during early years. Immediate annuities typically offer the least liquidity but may provide higher income rates.

Important: Surrender charges, fees, and tax implications may apply to withdrawals.

What happens to my annuity when I die? Death benefits vary by annuity type and options selected. Some may provide account value to beneficiaries, others offer guaranteed minimum death benefits, and some include spousal continuation features.

Is there FDIC Insurance on Annuities? Annuities are not FDIC insured. Unlike bank deposits which are FDIC protected up to $250,000, annuities are insurance products whose safety depends on the financial strength of the issuing insurance company. State guaranty associations provide limited protection if an insurer fails.

Important: Review the insurance company’s financial ratings and your state’s guaranty limits before investing.

Annuity strategies may coordinate with your other retirement planning.

Social Security Optimization

Coordinating annuity income with Social Security timing strategies to potentially help optimize lifetime benefits and manage taxation of Social Security benefits.

Tax-Efficient Withdrawal Strategies

Sequencing annuity income with other retirement account withdrawals to help manage tax brackets and potentially address lifetime tax considerations.

Medicare and Healthcare Planning

Timing annuity income to help manage Medicare surcharges (IRMAA) and coordinate with healthcare cost planning.

Estate Planning Coordination

Structuring annuity ownership and beneficiaries to support estate planning goals while working with your estate planning attorney.

Investment Portfolio Balance

Determining the appropriate allocation between income approaches (annuities) and growth investments based on your complete financial picture.

Let’s determine if annuities might enhance your retirement planning.

Retirement income planning has become increasingly complex, but the goal remains focused: working toward reliable income to support your desired lifestyle. Annuities may play a role in achieving this goal, but only when properly selected and integrated with your complete financial strategy.

We’ll help you understand your options, explore competitive products from highly-rated carriers, and integrate any annuity strategy with your comprehensive retirement and tax planning.

Schedule a complimentary annuity consultation today. We’ll analyze your retirement income needs, discuss how annuities might fit your situation, and explore whether income strategies can enhance your overall retirement planning.

Important Disclosures

No Guarantee of Results: No annuity strategy can guarantee specific outcomes. Annuities involve surrender charges, fees, and conditions that may affect income and benefits. All guarantees depend on the financial strength and claims-paying ability of the issuing insurance company.

Educational Purpose Only: This information is for educational purposes only and does not constitute insurance, investment, tax, legal, or financial advice. No content should be construed as a recommendation to purchase any specific annuity product.

Annuity Product Risks and Considerations: All annuities have limitations, exclusions, and conditions that may affect coverage and benefits. Annuities involve surrender charges that may apply for several years. Early withdrawals may result in penalties and tax consequences. Annuities are insurance products, not bank deposits, and are not FDIC insured.

Variable Annuity Risks: Variable annuities involve investment risk and you may lose money, including amounts paid in premiums. Variable annuities have higher fees than other annuity types and may include mortality and expense charges, administrative fees, and investment management fees. Optional riders involve additional costs.

Indexed Annuity Risks: Indexed annuities have caps, spreads, and participation rates that may limit growth potential. Returns are based on the performance of an underlying index but you do not directly participate in the index. Complex crediting methods may make it difficult to understand potential returns.

Fixed Annuity Risks: Fixed annuities may not keep pace with inflation, potentially reducing purchasing power over time. Interest rates paid by the insurer may change based on their declared rate policies.

Immediate Annuity Considerations: Immediate annuities typically involve giving up access to your principal in exchange for guaranteed income. This decision is generally irrevocable and may not be suitable if you need access to your funds.

Surrender Charges and Liquidity: Most annuities have surrender charge periods during which withdrawals may be subject to significant penalties. Annuities are designed to be long-term investments and may not be suitable if you need regular access to your funds.

Tax Considerations: Tax treatment of annuities depends on individual circumstances, how the annuity is funded, and current tax law, which may change. Withdrawals from annuities are generally taxed as ordinary income and may be subject to penalties if taken before age 59½. Consult with qualified tax professionals regarding your specific tax situation.

Commission Disclosure: Annuity product sales generate commissions and other compensation. We will provide full disclosure of all compensation arrangements before any product purchase. This compensation may create conflicts of interest, which we work to manage in your best interest as a fiduciary advisor.

Insurance Company Financial Strength: Annuity guarantees depend on the financial strength and claims-paying ability of the issuing insurance company. Review insurance company ratings from independent rating agencies before investing. State insurance guaranty associations provide limited protection that varies by state.

Individual Suitability: Strategies that may be appropriate for one person may not be suitable for another. Individual circumstances including age, health, income, family situation, risk tolerance, liquidity needs, and investment objectives significantly affect the suitability of different annuity approaches.

Professional Consultation Required: Before implementing any annuity strategies, consult with qualified insurance professionals, tax advisors, and other experts familiar with your specific circumstances and the specific terms of any annuity being considered.

State Insurance Regulations: Annuity products and services are provided only in states where properly licensed. Product availability, features, and benefits vary by state and insurance carrier. State insurance regulations and guaranty fund protections vary by state.

Projected Returns and Illustrations: All projected returns and annuity illustrations are hypothetical and not guaranteed. Actual results may vary significantly from projections. Illustrations are based on assumptions that may not prove accurate over time.