Annuities and Retirement Income
Turn some of your crypto into steady income.
Fixed and fixed indexed annuities for tax-deferred growth and income, backed by the claims-paying ability of the issuer. A way to convert part of a crypto position into income that does not depend on the next cycle.
The exposure
A big gain isn't the same as steady income.
A concentrated cryptocurrency position can constitute meaningful wealth while remaining an unreliable source of income. Because its value tracks the broader market and it generates no income independently, funding ongoing expenses requires selling into whatever price the market offers, realizing gains or losses on the market's terms rather than the investor's. For those at or near retirement, this creates significant planning challenges.
An annuity is a contract with an insurer. You contribute a sum, and in return get tax-deferred growth and, when you choose, income for a set period or for life. Annuities also carry costs, surrender charges, and limits, so the question is never whether to annuitize everything. It is whether a predictable income floor fits your plan.
Coverage choices
The two kinds of annuities we use.
DAG Insurance places annuities that are insurance products, not securities. Both are backed by the claims-paying ability of the issuer.
An optional income rider, at additional cost, can provide income for life, backed by the claims-paying ability of the issuer.
Fixed annuities
A stated, fixed interest rate for a set term, with tax-deferred growth. Predictable and conservative. Surrender charges apply to early withdrawals above the contract limit.
Fixed indexed annuities
Growth linked to a market index, subject to a cap and a floor. More upside than a fixed annuity in strong years, downside protection on the index in weak ones, with contract fees. Caps and participation rates vary by carrier and can change.
How it fits the plan
Where an annuity fits into crypto assets.
An annuity is not a replacement for a crypto position; it has the potential to remove a measure of risk in a controlled way. By repositioning a portion into an annuity while leaving the remainder intact, an investor may establish a base of income that does not move with the market cycle. Because repositioning crypto generally requires selling it, potentially creating a taxable event, the tax cost is factored into the analysis.
The objective is not to reduce your exposure to crypto or to take a position on where the market is headed. It is to help establish a foundation of income that stands independent of crypto market performance, so your financial stability is not tied to what the market does next.
Benefits
What an annuity gives you.
Tax-deferred growth
Contract value grows untaxed until withdrawal, subject to the tax treatment of the funds used.
Guaranteed income options
Income for a set period or for life, backed by the claims-paying ability of the issuer.
An income floor off the cycle
A predictable base that does not rise and fall with a volatile position.
Downside protection on the index
In indexed contracts, a floor protects contract value from index losses, in exchange for a cap on gains.
Coordinated approach
Affiliated companies work together to address multiple areas of your financial life.
Independent carrier selection
Contracts shopped across carriers, subject to availability.
Did you know
Annuity guarantees are obligations of the issuing insurer, not any government agency. State guaranty associations offer a limited backstop with coverage limits that vary by state, which is one reason carrier selection matters.
Insurance products, not securities
Fixed and fixed indexed annuities are insurance products, not securities. Their guarantees rest on the claims-paying ability of the issuer.
Frequently asked questions
Question 01 of 05
Should I put my crypto into an annuity?
An annuity can convert a portion of assets into predictable income, and some people use it for that purpose. Whether it fits your situation, and in what amount, if any, depends on your individual circumstances. An income review with a licensed professional can help you evaluate the question.
Next step
Figure out whether an annuity has a role.
An income review starts with what you hold, what income you will need, and when. Most people leave with a written summary and a clear view of whether an annuity has a role.