Annuity Alliance (2024)

FAQs

Is annuity Alliance legit? ›

With Annuity Alliance, you can access a national network of reputable annuity professionals who share in our mission of educating consumers and providing unbiased information regarding annuities. We have the privilege of working with some of America's most experienced agents and financial professionals.

Insurance agents and financial advisors have been investing their clients' retirement money in annuities for decades. This practice has its detractors, with the criticism usually focusing on the high commissions paid to annuity salespeople and stiff fees charged to annuity owners year after year.

Pros and Cons

Let's start with the benefits: The benefit of a Allianz variable annuity is unlimited upside without a cap. Now for the drawback: The drawback is that LOSSES are also unlimited, and you pay HEAVY FEES every year if you choose the broker/commission model.

With an annuity—especially a fixed annuity—they know what their monthly income will be (and can budget accordingly). This saves them the task of managing their retirement portfolio, a plus for those who worry they aren't capable of managing their own portfolio.

Payments You Might Receive From a $50,000 Annuity

A straight fixed annuity is the easiest type of annuity to calculate a payment from. This is because fixed annuities work like bonds. If you use $50,000 to buy a fixed annuity paying 5% per year, for example, you'll earn $2,500 annually or about $208.33 per month.

Five-Year Rule

With the Five Year Rule, the beneficiary has several options regarding when to receive the death benefit proceeds: Take all the money out soon after the death of the owner. Take periodic payments at any time during the five-year period. Wait until the fifth year to take all the annuity proceeds at once.

Most financial advisors will tell you that the best age for starting an income annuity is between 70 and 75, which allows for the maximum payout. However, only you can decide when it's time for a guaranteed stream of income.

Do millionaires buy annuities? ›

But certain annuity characteristics still have particular appeal to wealthier investors. Here's a look at the pros and cons of annuities in general, along with reasons the rich often include annuities as part of their long-term wealth-building plans.

In general, 401(k) plans — and the very similar 403(b) plans offered by nonprofit organizations — are a better way to grow your cash for retirement than an annuity.

Allianz is a financially secure company with high customer satisfaction ratings for its annuities. Allianz has the longevity common among top annuity companies, having started in 1896. It specializes in fixed index annuities and has an impressive selection of these products.

Annuities can be a bad choice for some people—they have higher fees and less flexibility than some savings options. And depending on the type you choose, your heirs may get nothing after you die even if far less was paid out than you had contributed.

Yes, Allianz is a reputable company. Allianz, the parent company of Allianz Global Assistance, has a history that spans more than 100 years.

‌They don't want their army of advisors pushing Immediate Annuities, Deferred Income Annuities, QLACs, and Qualified Longevity Annuity Contracts. Why? You can't charge a fee on those, and those are irrevocable lifetime income products, which means that money in the firm's eyes is gone.

Because an annuity is not a bank deposit, your money is not FDIC-insured as a bank deposit would be. If you buy an annuity from an insurance company that fails, you do have some recourse. Each state has a guaranty association that protects policyholders when an insurance company fails.

An annuity is a financial product that can help address some common financial concerns, from helping you save for retirement and providing a level of protection for your retirement savings to helping address inflation and longevity. Allianz® annuities offer the following features and benefits: Line Graph.

Yes, annuities are a safe addition to a retirement plan. Due to their market-proof returns, they are a safer income source than options like stocks and bonds. Annuities carry the risk of early death, but certain riders can protect heirs from income loss if the annuitant passes away prematurely.