What's the difference between a fixed and a variable annuity?

A fixed annuity pays a set interest rate or income. A variable annuity's value depends on investments you choose, so it can rise or fall. Fixed indexed annuities fall in between, crediting interest based partly on a market index.

Do I still need life insurance after I retire?

Maybe. If a spouse would lose income when you die, or you want to cover estate costs or leave a legacy, it can still play a role. If not, an old policy may be worth re-evaluating.

Does Medicare pay for long-term care?

Medicare generally covers only short-term skilled care after a hospital stay, not ongoing custodial care. That's why long-term care deserves its own plan.

Insurance & annuities

Insurance and Annuities: A Balanced Look

Building wealth is only half the job. Protecting it, and turning part of it into income you can't outlive, is the other half. Paul helps you decide whether insurance or an annuity belongs in your plan, and when it doesn't.

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Should I buy an annuity?

An annuity can make sense if you want a portion of your savings to provide guaranteed lifetime income, especially to cover essential expenses that Social Security and any pension don't. But annuities have costs, surrender periods, and limits on access to your money. Whether one fits depends on your income needs, other assets, health, and comfort with market risk.

Annuities: what they can and can't do

Can help with

Creating lifetime income that doesn't depend on markets
Covering essential bills alongside Social Security
Reducing the risk of outliving your savings
Tax-deferred growth

Trade-offs to weigh

Fees and expenses, which vary widely by type
Surrender charges if you need the money early
Less flexibility and liquidity
Withdrawals are taxed as ordinary income, with a possible 10% penalty before 59½

There are several types, including immediate, fixed, fixed indexed, and variable annuities, and they work very differently. Paul explains the options in plain English and how each would fit your income plan.

Life insurance in retirement

Life insurance can replace income for a surviving spouse, cover estate taxes, or leave money to heirs. Proceeds are generally income-tax-free to beneficiaries, which can let you spend more of your own savings during retirement while still leaving a legacy. Many people also have old policies worth reviewing: coverage that's no longer needed, or beneficiaries that are out of date.

Long-term care

Medicare covers very little long-term care. A long stay in assisted living or a nursing home can strain a plan and leave a surviving spouse short. Options include traditional long-term care insurance, hybrid life and long-term care policies, or setting aside your own savings. Planning before 65 usually means more choices.

How Paul helps

Identify the real risks in your plan and what it would cost to cover them
Review existing policies, annuities, and beneficiaries
Compare insurance and annuity options against keeping the money invested
Show the trade-offs clearly before you decide

Straight answers

Frequently asked questions

For some retirees, yes, especially those who want guaranteed income to cover basic expenses. For others, the costs and loss of flexibility outweigh the benefits. It depends on your whole plan.

Guarantees are based on the claims-paying ability of the issuing insurance company.