STEP 4: Putting It All Together
Here is an overview of the necessary steps of the annuity comparison process:
STEP 1
Identify the characteristics of the annuity
- Variable vs. Fixed
- Immediate vs. Deferred
- Single Premium vs. Flexible Premium
STEP 2
Identify the 4 Critical Comparison Points
- Guaranteed Income Base
- Guaranteed Payout Percentage
- Guaranteed Payout Amount
- Guaranteed Fees
STEP 3
Fine Tune Additional Considerations
- Single or Joint Life Payout
- Surrender Charge Period
- Method of Distribution
- Death Benefit
- COLA
- LTC Coverage
- Carrier Rating
STEP 4
Putting It All Together
Once you have completed the first three steps (the information gathering), you need to put all your information in a format that makes a comparison between different annuities clear and easy for you. Whether you do this on your own on the back of an envelope, create your spreadsheet. It is imperative that this is done.