If you've ever watched your portfolio dip on a Monday morning and felt your stomach drop with it, you're not alone. The stock market's roller coaster effect has a way of testing even the most seasoned investors — and for retirees, that volatility isn't just uncomfortable. It can pose a real risk to your financial future. But here's something that might surprise you: owning a fixed annuity could actually make you a more confident stock market investor. That's not a typo. Let me explain.
We see it everywhere: 8% guarantees, 10% income for life. When people call in, they often tell us things like, “I talked to someone who said 8% was the floor—the minimum I can earn,” or “This other place showed me how I can get 10% cash flow for life on my assets.” And while those claims can be true, they often leave out some very important details.
One of the most common questions we hear is: Do I need an annuity? And if so, how much of my money should go into one? Today, let’s walk through how to think about that. The reality is simple: everyone’s situation is different. Some people may want nothing in an annuity. Others may choose 10% , and some may allocate as much as 50% . It all depends on your foundational income needs and your comfort level with risk.