What is an Annuity?

Is an annuity the right fit for you?

What is an annuity?

An annuity is a valid retirement option for many.

Some types of annuities could provide you with a guaranteed* income source, with reasonable returns** and minimal risk. Some types of annuities can provide you with these benefits via being protected from market loss. In the event of a market drop, your money will stay protected. But, when the market is on an upward trend, your annuity can grow.


Where should you keep your money? Sonoma Financial can help you answer this. We’ll take the time to educate you. What are your current goals? Do you know what your current fees are? Are you comfortable with your rate of return? And, have you considered potential risks? We can help you find a strategy that is right for you.


What Are Annuity Myths and Misconceptions?

There are a number of misconceptions about what an annuity is. You may hear some agents say that certain annuities are bad. Why do they think this? Well, for one thing, not all annuities are the same. Some annuities you can purchase invest money directly into the stock market. The products that Sonoma Financial offers work differently. We work with trusted insurance companies, that issue annuity types that protect your principal while offering a reasonable rate of return**. Contact us to learn more about these types of annuities if these are benefits you’re looking for.

Learn More About Annuities

We have a thorough process to determine if an annuity is the right option for you. We offer dinner seminars you can attend, where we’ll educate you on a number of relevant topics. For example, we’ll explain what annuities are and how they differ from other retirement vehicles. Also, you can meet with us one-on-one to discuss your personal retirement strategy and goals. Together, we’ll discuss several details that impact your retirement, like:

  • What stage of retirement you’re in
  • How much you have in liquid assets
  • How much of that cash is available for emergencies
  • Whether you’re okay with risk, and how much of it you can tolerate
  • Will income provided by an annuity be enough to cover your expenses?
  • And more

What Is An Annuity? Then Vs. Now

In the past, your options when it came to annuities were very limited. Some annuities offered protection of principal, but had very low returns. Others offered better returns, but came with the risk of losing the money you put into it. Thankfully, however, the industry has since evolved. Over the past decade or so, annuities have changed. If you work with the right company, you can find an annuity that suits your needs. You don’t have to choose between the options of protecting your hard-earned money, and getting a reasonable rate of return**. Some annuities also come with features to help retirees leave behind a legacy.


And, some annuities come with additional benefits. For example, you may be able to use the money for unexpected benefits like funding for final expenses and additional income with long-term care features. Retirees have more annuity income options available than ever before. Work with a licensed annuity professional, to help understand what an annuity is and if it may be right for you.

What Is An Annuity?
Red Vs Green Line

The stock market (in red) goes up and down frequently. That’s its nature. The gains on an annuity (in green) in contrast, are much more stable. There is steady accumulation over time, yet no loss. You can have the confidence of knowing your money is protected and is there for you when you need it. An annuity can help you achieve your long-term financial goals. As you can see from the green line, sometimes slow and steady wins the race.

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