A multi-point, no-spin, logic-driven breakdown of why annuities often provide better retirement outcomes than conventional risk-bearing income strategies—and why this week’s market volatility offers yet another painful reminder of that truth.

Disclaimer:
The information contained in this article is for educational and informational purposes only and should not be construed as investment, legal, or tax advice. The views expressed are those of the author and do not constitute a recommendation to buy or sell any financial product. Annuities and other financial products may not be suitable for all individuals, and all decisions should be made based on your specific financial situation and objectives. You should consult with a licensed financial professional before making any financial decisions. Past performance is not indicative of future results.

 

Let’s skip the fluff. This isn’t about hype, fear tactics, or clever sales language. It’s about a simple, bottom-line argument: When it comes to generating retirement income, annuities—particularly when used properly in a time-segmented, laddered strategy—can offer more income with less risk, more predictability with less stress, and greater long-term success than the traditional methods retirees are told to rely on.
 

And yet… most people still cling to portfolios that rise and fall like emotional rollercoasters, hoping to squeeze out sustainable income from assets that were never designed to provide it. Meanwhile, the solutions that actually guarantee income for life are ignored, misunderstood, or dismissed entirely. This week’s market swings are a front-row seat to that disconnect.
 

Our phones aren’t ringing with panicked clients—because our clients aren’t panicked. Stock brokers across the country are fielding nervous calls right now from retirees worried about how far their portfolios might fall. But our clients are calm. Why? Because none of their essential retirement income is tethered to market performance. None of it depends on Wall Street’s cooperation.
 

Our clients have already solved 100% of their lifetime income needs—with inflation adjustments already built in—using roughly half of their total portfolio through a precisely designed, laddered annuity strategy.

And because they’ve locked in guaranteed income for life with zero downside market risk, the only calls we tend to receive during downturns are from clients who are excited.

Excited that their surplus annuity income is piling up in their checking accounts.

Excited to buy the dip with the growth portion of their portfolio.

Excited to take advantage of opportunity—while others are paralyzed with fear.
 

Because when your income is guaranteed by multi-billion-dollar, A+ rated insurance companies—companies that have already survived two World Wars, the Great Depression, the stagflation of the 1970s, Black Monday in ’87, 9/11, the 2008 financial crisis, COVID, the 2022 downturn, and now the latest tariff shocks hitting markets—your mindset changes.

You stop reacting. You start planning.

You stop worrying. You start winning.

 

So here’s the logic, laid out clearly.
 

1. Modern annuities are nothing like the annuities of decades past.
   
   Today’s income-focused annuities guarantee lifetime income, offer contractually guaranteed deferral rates as high as 8–10% per year (similar to how Social Security grows with deferral), and include full survivor benefits. They don’t require you to forfeit your principal or tie up all your assets forever. You maintain control, flexibility, and access to your funds—while still receiving guaranteed income for life.
   
    

2. Annuities can generate significantly more income using far less capital.
   
   A traditional 4% withdrawal strategy from a $1 million portfolio generates $40,000 per year—while exposing you to full market risk. But with today’s annuity rates, a retiree in their mid-60s could generate more like $50,000 per year with only around $600,000 of capital—25% more income using 40% less money, in a zero market-risk environment.  Or, if they used the full $1 million for income via annuities, they could be looking at closer to $80,000 per year—double the income of the 4% method. Again, with none of the downside risk.
   
    

3. Why would anyone choose more risk for less income?
   
   The most basic investing principle says that more risk should come with the potential for more reward. But when it comes to retirement income, traditional methods turn that idea on its head. Moving from a no-risk annuity strategy to a fully risk-exposed market strategy would only make sense if it generated significantly more income. But it doesn’t. It generates less. You’re trading away safety and peace of mind—for the privilege of earning half the income. Where’s the logic in that?
   
    

4. Annuities create the most mathematically balanced retirement plan.
   
   If annuities can produce higher income with less capital, you no longer need to dedicate your entire portfolio to income generation. You can use part of your portfolio to guarantee income, and free up the rest for long-term, uninterrupted growth. That’s exactly why our clients aren’t panicking. The income side of their plan is locked into a laddered annuity strategy that provides inflation-adjusted raises every 3–5 years. The growth side of their portfolio can weather any market downturn without ever needing to be touched for income. Their income is fully protected from sequence of returns risk and downside exposure. Their plan is optimized, rational, and bulletproof.
   
    

5. Annuities eliminate the #1 hidden risk: sequence of returns.
   
   Most retirees don’t realize that early losses in retirement—even modest ones—can irreparably damage their ability to generate income later on. Everyone who got wiped out in 2008 started with a 10% loss and told themselves, “I’ll make changes when it rebounds.” But the rebound never came. By the time they were down 30–40%, it was too late. That’s the gambler’s spiral. And it’s happening again right now.
    

And here’s the other trap: it’s easy to obsess over what’s happened in the last 60 days, or even the last 60 hours.

But when in doubt… zoom out!

Don’t develop tunnel vision and "stare at the short-term chart" like a day trader. Step back and look at the full picture. Many retirees are still way up overall over the last 3–5 years. The gains since the COVID bottom in 2020 have been massive.
 

So instead of focusing on how much you’re down year-to-date, try focusing on how much you’re still up since 2020. That’s a far more rational and strategic lens—and one that might help you act based on logic instead of fear.
 

And consider this:many people are still sitting near all-time highs - even after this current year-to-date pullback.  If that's you, then you potentially still have the rare opportunity to lock in gains while values are still elevated—and shift a portion of your portfolio into annuities while interest rates remain near 20-year highs.

That’s not panic. That’s strategy.
 

The golden rule of investing has always been: "Buy low, sell high." 

The golden rule of investing is NOT “buy low, ride it to the top, then get caught in a toxic mix of fear and greed, and accidentally ride it all the way back down due to decision paralysis.”
 

But with interest rates now falling along with the stock market, moving money after giving back huge portions of your prior gains, only to move into annuities months from now, that may have also experienced a couple of rate cuts by then, means the same principal deposit may then produce 10-15% less income.  

So timing is important to consider. 

If you want to see exactly how to secure your retirement income, preserve your gains, and stop the spiral before it starts—then book a strategy session with us.  We are a network of legally-bound fiduciary advisors helping people nationwide, right now, navigate the challenges of current market fluctuations.