Financial Advisors: “You Don’t Need an Annuity”? Let’s Get Real.

I keep hearing this from some financial advisors: “You don’t need an annuity.” Yikes. That statement assumes there are investments you do need. But honestly, what’s on their list:

  • That one stock everyone hype‑trains?
  • That shiny ETF or bond or mutual fund?

Newsflash—none of them are classified as “needs”. Not a single one. A financial plan isn’t a to-do checklist. It’s a strategy built around your life, goals, and yes—sometimes annuities belong.
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Why the “You Don’t Need an Annuity” Defiance Gets It Wrong

True financial planning balances:

  • Your goals
  • Your risk tolerance and capacity
  • Your time horizon
  • Your need for guarantees (like lifetime income)

  • The cost of complexity or liquidity

An annuity isn’t inherently good or bad. It’s simply a tool—one that provides guaranteed, tax-deferred or lifetime income. It’s not a must-have for everyone—but it’s sometimes exactly what a smart plan needs. 

When an Annuity Does Make Sense

1. You’re Worried About Outliving Your Savings

Annuities can convert part of your 401(k) into a guaranteed, lifetime paycheck—like your own personal pension. 

2. You Need Steady, Predictable Income

Especially appealing when markets are choppy. Fixed or indexed annuities protect principal and offer payouts—whether or not the market cooperates. 

3. You Want to Reduce Your Retirement Tax Burden

Some annuities let you delay or spread out taxes in retirement. This can help you avoid surprise tax bills when you're no longer working—and even keep you in a lower tax bracket.

4. You Want Safeguards Against Fraud

Certain annuities can’t be transferred or liquidated—making them less vulnerable to scams targeting older retirees.

Not Sure if an Annuity Fits? Here’s How to Think About It

Step

Ask Yourself

Why It Matters

1

What are your retirement goals?

Income stability, legacy, inflation protection—each goal might point to different tools

2

How much guarantee do you want?

Annuities offer certainty that other investments don’t

3

How flexible do you need your money to be?

Annuities limit liquidity—so compare costs versus benefits

4

Are you comfortable with the fees and terms?

Just like any tool, understanding it matters

5

Does it solve a clear need?

If yes, it’s not a bias—it’s precision

Final Thought: Tools, Not Dogma

If a financial advisor says, “You don’t need an annuity,” politely remind them: no investment is a requirement. What matters is how it fits your goals, not their biases or commission incentives. 

At Gruene Insurance Group, we don’t push products—we build plans. So ask yourself:

  • What do guarantees mean to your retirement?

  • Could annuities reduce your taxes or stress?

  • Is a steady paycheck—even when markets dip—important to you?

Let’s design your plan for you. Text or call us, and we’ll talk through whether an annuity fits—or whether something else fits better.

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