Question 1

Is my money safe in an annuity?

Accepted Answer

Fixed annuity guarantees are backed by the claims-paying ability of the issuing insurance carrier. Carriers are state-regulated, hold statutory reserves, and are further protected by state guaranty associations up to statutory limits. This is different from FDIC insurance, and we work with A-rated carriers.

Question 2

Can I lose money in a fixed annuity?

Accepted Answer

In a fixed rate (MYGA) or fixed indexed annuity (FIA), your principal is not exposed to market losses. You can, however, receive back less than you deposited if you withdraw more than the free amount during the surrender period and trigger surrender charges or a market value adjustment.

Question 3

How is annuity income taxed?

Accepted Answer

Non-qualified annuity income is taxed under the exclusion ratio — part return of premium (tax-free), part interest (ordinary income). Qualified (IRA) annuity income is fully taxed as ordinary income. Consult a tax professional about your situation.

Question 4

What happens to my money if I pass away?

Accepted Answer

It depends on the payout option and any death benefit rider. Options include a return of remaining contract value to a named beneficiary, a period-certain continuation, or a joint-life continuation to a surviving spouse.

Question 5

What is a surrender charge?

Accepted Answer

A percentage charge applied to withdrawals above the free amount during the initial surrender period (often 5–10 years). Surrender charges are disclosed up front and decline each year until they reach zero.

Question 6

What's the difference between fixed and fixed indexed?

Accepted Answer

A fixed (MYGA) annuity credits a declared interest rate. A fixed indexed annuity (FIA) credits interest based on a formula tied to an outside market index — with a floor of zero, so you don't lose principal to market drops, but with caps or participation rates that limit upside.

Question 7

Do you sell variable annuities?

Accepted Answer

No. Variable annuities are securities and require FINRA registration. Richard Williams holds a Florida insurance license and offers fixed products only. Clients whose needs call for a variable contract are referred elsewhere.

Question 8

How much of my money should go into an annuity?

Accepted Answer

There's no universal answer, but a common approach is to use enough to cover the gap between guaranteed income (Social Security, pensions) and essential monthly expenses, leaving the rest of the portfolio invested for growth and liquidity.

Question 9

Is an annuity a good investment?

Accepted Answer

Fixed annuities are insurance contracts, not investments in the securities sense. They're best evaluated on whether they solve a specific problem — usually guaranteed lifetime income or protected growth — better than the alternative.

Question 10

How do I get started?

Accepted Answer

Use the income calculator on this site for a rough estimate, then book a consultation. Richard will walk through your goals, review current-market illustrations from multiple carriers, and give you a straight answer on whether an annuity fits.

Straight answers.

Ready to see the numbers for your retirement?