A Case for Annuities

Annuities may have a bad reputation but have a place in some financial plans.  In this episode of Financial Clarity for Doctors, hosts Corey Janoff and Rachelle Vanderzanden dive into the intricacies of annuities and how they can potentially be used to reach different goals.

This episode discusses:

• The history of annuities – one of the oldest financial instruments!
• Different kinds of annuities.
• Pros and cons of annuities, including things like costs and tax implications.
• Where annuities can sometimes fit into a financial plan.

Annuities are complex and often expensive, but they can also serve a purpose.  For those who want a secure income source in retirement, they can be a good tool to establish a baseline (depending on how it is structured).  For some people the peace of mind is worth the cost.

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP

Verify current source URLs and product-specific claims before publication. Annuity guarantees depend on the contract and the issuing insurer’s claims-paying ability. State guaranty protections vary. The episode is educational and should not be construed as individualized financial or tax advice.

Fixed and Variable annuities are suitable for long-term investing, such as retirement investing.  Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.  Variable annuities are subject to market risk and may lose value.​ Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company.

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions.

Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.  Finity Group, LLC is a separate entity from LPL Financial.

Source List:

Financial Industry Regulatory Authority. “Variable Annuities.” FINRA, https://www.finra.org/investors/investing/investment-products/annuities. Accessed 14 Oct. 2026.

Gratton, Peter.  “What Share of Retirees Get Almost All Their Retirement Income From Social Security?” Investopedia. https://www.investopedia.com/what-share-of-retirees-get-almost-all-their-retirement-income-from-social-security-12160142.  Accessed 14 Oct. 2026.

Hicks, Darryl.  National Reverse Mortgage Lenders Association.  “Two-Thirds of Seniors Rely on Social Security for More Than Half Their Income.  NRMLA.  https://www.nrmlaonline.org/2024/11/08/two-thirds-of-seniors-rely-on-social-security-for-more-than-half-their-income. Accessed 14 Oct. 2026

MassMututal Ascend.  “History of annuities.”  MassMutual.  https://www.massmutualascend.com/insights/history-of-annuities.  Accessed 14 Oct. 2026.

National Association of Insurance Commissioners. “Annuities.” NAIC, https://content.naic.org/insurance-topics/annuities. Accessed 14 Oct. 2026.

U.S. Securities and Exchange Commission. “Annuities.” Investor.gov, https://www.investor.gov/introduction-investing/investing-basics/investment-products/annuities. Accessed 14 Oct. 2026.

U.S. Securities and Exchange Commission. “Updated Investor Bulletin: Indexed Annuities.” Investor.gov, 31 July 2020, https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/updated-investor-bulletin-indexed-annuities.

U.S. Securities and Exchange Commission. “Variable Annuities.” Investor.gov, https://www.investor.gov/introduction-investing/investing-basics/investment-products/annuities/variable-annuities. Accessed 14 Oct. 2026.