Rachel purchased a fixed annuity that had a 5-year term. Her elderly dad had assisted her with selecting and purchasing this particular product, but unfortunately, he passed away last year. She could renew the annuity or do something else with the account, but...what to do?
She thought she could read online how annuities worked and make her decision, but there were so many conflicting articles! Some said never to get an annuity, while others expressed a myriad of details that didn't seem to follow any logic. By trying to do her own research, she added more confusion to the situation. Now she was utterly uncomfortable trying to do anything with her annuity alone with a due date looming to decide.
A Friend's Solution
While having lunch with Barbara, a coworker who was also a good friend, Rachel lamented her situation. Barbara was quick to offer a solution. "Go see my retirement income planners! They simplify things so I understand my options, and they don't charge for consulting. You need guidance from a professional on that annuity." Rachel admitted she didn't want to feel obligated to use their services, but made the call anyway.
She was so glad she did!
"When I met with my retirement advisors, I was surprised by their relaxed attitude, frankness, and patience in educating me on my alternatives. I was surprised to learn that I should not just decide what to do with my one investment product. I would benefit from making an overall retirement plan, including when to turn on my Social Security benefits and what to do with my 401K at work. So everything worked toward my common goal! I was pleased to learn that their staff could also assist me in later selecting a Medicare health plan when I retire and lose my employer's health plan. I already knew Medicare wouldn't be something to tackle on my own. Wow, this team could help me with my retirement needs from A to Z! Oh, and after my initial meeting, I attended a free retirement planning workshop to solidify my understanding. What started as a simple question about an old annuity became formalizing an income plan for staying retired when I was ready! I felt so relieved and confident about my financial future!
Got questions, and you're not sure which way to turn? Need guidance on a simple question and education on what to do and when? What if the people you consulted weren't pushy salespeople? Call us! We're here to help!
By American Retirement Advisors
American Retirement Advisors helps retirees and pre-retirees navigate Medicare, estate planning, and retirement income — so you can enjoy the retirement you've earned.
You Might Also Like
- Success Story: From 'I Don't Want Any Annuities!' to Understanding the Options
Success Stories · Tammy M. Semler - Hidden Treasure Success Story: Finding Order in Retirement Chaos
Success Stories · Tammy M. Semler - Three Things Success Story: How One Advisor Simplified Retirement Planning
Success Stories · David S. Edge
Easy Eddie's Take
Rachel's story hits on something I hear all the time: "Can I just roll over my annuity into an IRA, or should I keep it?" Here's the good news - there's no one-size-fits-all answer, and that's actually helpful. A fixed annuity that's reaching maturity gives you options like a 1035 exchange to another annuity, rolling into a traditional IRA, or even converting portions to a Roth IRA depending on your tax situation.
What Rachel discovered is something most people are surprised to learn: when you're within 5-10 years of retirement, everything connects. Your Social Security claiming strategy at full retirement age, your 401k rollover decisions, and yes, even Medicare enrollment during your Initial Enrollment Period all work together. For 2026, if you're turning 65, your Medicare Initial Enrollment Period starts three months before your birthday month and ends three months after. Miss that window, and you might face late enrollment penalties from the Centers for Medicare & Medicaid Services.
The biggest takeaway from Rachel's experience? Don't try to solve retirement planning one piece at a time. A little preparation today that looks at the whole picture can make a big difference tomorrow.