At first glance, annuities can seem like a reassuring solution, offering market upside with 100% downside protection. They are trying to sell peace of mind in retirement.

That promise, and the peace of mind it offers, comes with meaningful trade-offs.

• Credit risk. Not backed by the government.
• Long lock-up periods and surrender charges.
• Complex, hard-to-understand contracts.
• High backend fees often hidden or indirect.
• Taxed as ordinary income, the highest rate.
• No step-up in basis for your heirs.
• Lack of liquidity and control.
• Not required to act in your best interest.

Is There A Better Alternative
Fiduciary Advisors like ours use options and option-based products to give you the same 100% downside-risk benefit while keeping your assets in your brokerage account, without the trade-offs.

• Contracts guaranteed by the OCC.
• No lock-up periods, $0 surrender charges.
• No complex contracts, no fine print.
• Low fees, simple English, and no hidden fees.
• After 1 year, taxed as long-term capital gains.
• Step-up in basis, so no tax for heirs.
• Money available in 24 hours, no penalties.
• Your assets are held in your brokerage account.
• Fiduciary, MUST act in your best interest.

Before committing to a long-term contract, understand that an annuity’s guarantees often come with significant trade-offs. While they can provide stability, investors can achieve similar outcomes with more adaptable strategies that help keep control and access to their cash, so it’s essential to weigh whether the trade-offs truly align with your long-term goals.