LEGACY INSIGHTS

LBA Quarterly Newsletter - Spring Edition

2025 • Quarter 2 • Issue 14

Robert Dumais

Principal, LBA

This Issue’s Focus Question:

What is an Annuity, and Why Should You Care?

Annuities Come in a Variety of Flavors

There are a few different flavors of annuities, depending on what you're looking for: 

Fixed Annuities – The insurance company guarantees a specific interest rate on your money for a predetermined period. These are seen as low-risk options that provide stability and are sometimes referred to as a "CD on steroids" because their returns are typically higher than CDs. 

Indexed Annuities – The returns are linked to the performance of a market index, though your money is not actually in the market. They offer the potential for higher earnings than fixed annuities and are a better hedge against inflation, while still providing downside protection. 

Variable Annuities – Your money is invested in a selection of sub-accounts (similar to mutual funds), and your returns are based on market performance. These offer higher potential returns but also carry more risk. 

Immediate Annuities – You put in a lump sum, and start getting payments right away, it is like turning on a money faucet. 

Deferred Annuities – You let your money grow tax-deferred, and then later, when you’re ready, you start receiving payments. Great for long-term planning! 

Annuities can be Qualified or Non-Qualified – Qualified Annuities are funded with pre-tax dollars (like from an IRA, 401k, 403b, 457), while Non-Qualified Annuities are funded with after-tax dollars.  

No matter the type, it's all about making sure your money lasts as long as you do, because retirement should be about relaxing and not worrying about finances!

Smiling can make you feel happier! Even if you're not in a great mood, the act of smiling can trigger the release of endorphins, which help improve your mood.

Caution: Smiling alone will not secure your retirement.

1. Tax-Deferred Growth

2. Principal Protection  

3. Diversification  

4. Guaranteed Returns  

5. Inflation Protection

6. Legacy Planning  

7. Long-Term Care Benefits  

8. Lifetime Income Options  

9. Market Participation with Downside Protection  

10. Peace of Mind

Annuities are incredibly powerful tools that deserve consideration. Let the team at LBA customize one for you. We’re here to help you explore your options, guiding you through various annuity choices to find the best fit for your retirement goals. 

Lifetime Income Rider (Fixed Annuity) 

"We were worried about outliving our savings, but thanks to LBA, we now have a guaranteed income stream that will last for life...providing us with peace of mind and financial independence…"

Long-Term Care Rider (Indexed Annuity) 

"With healthcare costs rising, I was concerned about how I would afford long-term care if I ever needed it. LBA introduced me to an annuity with a Long-Term Care Rider, which allows me to access funds specifically for care expenses. This means that if I ever require long-term care services, I won’t have to worry about draining my savings…"

Death Benefit Rider (Fixed Annuity)

"My biggest worry was making sure my children wouldn’t be burdened financially after I’m gone. LBA helped me secure a fixed annuity with a Death Benefit Rider, which guarantees that my loved ones will receive a payout when I’m gone…"

Inflation Protection Rider (Indexed Annuity) 

"With the cost of living increasing, we wanted a plan that would grow with us. We opted for an indexed annuity with a rider, which automatically increases our annuity payments over time to keep up with inflation. This feature ensures that our purchasing power does not diminish…"

Return of Premium Rider (Fixed Annuity) 

"I was concerned about committing to an annuity and then needing access to my money later. LBA found me an annuity which allows me to get back my initial investment if necessary. This means that if my financial situation changes, I’m not locked in..."

These success stories highlight why so many people trust LBA to help them navigate retirement with confidence. Whether you’re looking for growth, protection, or guaranteed income, we can design a plan tailored to your needs. Contact us today to explore how we can help safeguard your future. 

We recently received this question from Mary T:

"My husband and I recently paid off our mortgage. How can we protect the property for our children if we both end up in a nursing home?"

Hi Mary, congratulations on paying off the mortgage. This is a good problem to have but it can be tricky. Protecting property for your children while planning for potential nursing home care involves strategies like creating an Irrevocable Trust, establishing a life estate, exploring long-term care insurance or an investment like an annuity with a long-term care rider to shield assets from being used to pay for care. However, these approaches require careful planning to navigate Medicaid’s look-back period and avoid potential tax implications. You will need assistance from an attorney as well, but LBA is here to guide you through the options and ensure your assets are protected for your family’s future.

Got Questions? Get in touch with us anytime!

Whether you’re curious about Social Security, Medicare, long-term care, or just want to make sure all your bases are covered, Bob Dumais and the Legacy Benefit Advisors team are just a call or email away. We’re ready to help you make informed decisions and build the retirement you’ve been dreaming of.

Here’s to your retirement with less worry, more comfort, and a lot of heart. Thank you for letting LBA be part of your journey.

We have covered so many critical topics in our many quarterly newsletters over the past few years. We've created a simple roadmap to all of these great articles for your benefit.