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The hottest “sounds too good to be true” and “best thing since sliced bread” product to hit the financial world in the past few years is the Fixed Index Annuity (FIA). Regardless of your specific financial goals, some agent or financial advisor will most likely pitch you this product…

Annuity sales continue to rise every quarter in the United States, and a lot of the credit for driving this consumer popularity is the Annuity Income Rider.

There is a reason 3 guys are wearing both “belts and suspenders” in the picture with this article. It’s not because I grew up in the south and that’s how my Uncle Joe looked at the family reunion! It’s due to the fact that some people mistakenly think using IRA money to fund annuities is duplicitous.

For people that enjoy reading the IRS tax code in their spare time, I would encourage you to flip to section 1035 and read about life insurance and annuity transfers. For those of you with a life, just let me explain the important details so it’s easy to understand.

What is an annuity? It is a transfer of risk contract that life insurance companies issue. Not all annuities are the same. The type of annuity you own will dictate what it contractually solves for.

During the last financial crisis in 2008, annuity companies weathered that storm very well and positioned themselves to take advantage of the demographic tidal wave of baby boomers looking for contractual guarantees.

I’ve learned the word “annuity” is a curse word in the financial industry. Perhaps some bad sales practices have helped with this bad reputation, or maybe it’s the constant “I Hate Annuities” ads that blanket all platforms. Many people that might need an annuity transfer of risk strategy have, unfortunately, opted not to learn more because of this unearned negative stigma.

Let’s take a look at why Republicans love annuities. We each have our own opinion when it comes to politics, but no matter if you're a Republican or a Democrat, there are reasons to love annuities and believe it or not, some common ground.

Annuities, they are contracts issued by life insurance companies. So, when someone asks me “How do annuities work?” it really depends on the type of annuity contract you are referring to. Most annuity types are designed for lifetime income, while others solve for principal protection, CD returns, and one type is structured for market returns.

Since I am licensed in all 50 states, I get a ton of calls from across the country with the following question, “Are Fixed Indexed Annuities a good investment and do they really get stock market returns?

There are many types of fixed annuities.

A retirement annuity can be multiple types of annuities. I think most people when talking about a retirement annuity, they're talking about a lifetime income stream. An immediate annuity, a deferred income annuity, or qualified longevity annuity contracts. Something that's going to create a pension type income stream.

Over 10,000 Baby Boomers are retiring every single day and millions more already enjoying their retirement years. Over 10,000 Baby Boomers are retiring every single day and millions more already enjoying their retirement years. Because of this, older adults are too often the targets of annuity salespeople. Annuities are not for everyone.

To answer that question, I need to know some information. First, you're going to have to tell me what you're trying to achieve and then we're going to get to the specific product types.