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.
Section 01
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.
Section 02
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.
Section 03
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.
FAQ
Frequently asked.
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.
Insurance disclosures
Insurance products and services are offered through DAG Insurance, a South Dakota limited liability company licensed as an insurance producer ("Xure Legacy Insurance Agency"), or its affiliates. DAG Insurance does not provide investment advisory or brokerage services. Investment advisory services are provided by its affiliate, DAG Wealth, an SEC-Registered Investment Adviser. Xure Legacy Insurance Agency is not a Registered Investment Adviser and does not provide investment advisory services. Administrative and support services are provided by DAG Private Client.
Insurance products are not securities, are not FDIC insured, and are not guaranteed by any federal or state government agency. Policy values may fluctuate and benefits are subject to the claims-paying ability of the issuing insurance carrier. Clients are encouraged to review all policy documents carefully prior to purchase.
DAG Insurance and its affiliates operate in connection with digital asset and alternative investment strategies, including the potential use of permanent life insurance products for estate liquidity, wealth transfer, and risk management planning in portfolios that may include digital assets. Life insurance products involve their own risks and considerations, including policy performance versus illustrations, carrier financial strength, liquidity provisions, premium sustainability, and tax treatment. Investing in digital assets involves substantial risk, including but not limited to: extreme price volatility and the potential for significant or total loss of principal; cybersecurity, hacking, theft, and custody risks; regulatory, legal, and tax uncertainty; illiquidity; and the possibility that such investments may not be suitable for all investors. Digital asset markets have historically experienced drawdowns. Past performance is not indicative of future results. All investments and insurance products involve risk of loss.
Recommendations regarding insurance products are subject to a suitability analysis based on the client's individual circumstances. Any compensation arrangements, including trails or other payments to affiliates or individuals, are disclosed as required by applicable regulations. Clients should consult with qualified insurance, legal, and tax professionals. Additional disclosures are available upon request.
Compensation disclosure: Certain licensed financial professionals associated with DAG Holdings may receive referral fees or commissions for insurance products sold through Xure Legacy Insurance Agency. This compensation creates a conflict of interest, as it may incentivize recommendations based on compensation rather than on client need. Clients are not required to purchase insurance products through Xure Legacy or any DAG affiliate. All referrals and recommendations are made only where determined appropriate for the client's specific needs. All compensation is disclosed prior to purchase.
Disclosures
DAG Holdings Co is a holding company that does not provide investment advisory, brokerage, administrative, or insurance services to clients. DAG is not a law firm, does not provide legal or tax advice, and does not provide tax preparation services. Tax matters are handled through referrals to independent qualified tax professionals.
DAG Private Client services involve estate matters that require qualified independent counsel in the applicable jurisdiction. LLC formation, trust drafting, and estate planning services are provided in coordination with or by qualified independent legal counsel licensed in the applicable jurisdiction.
Asset protection structures, including Wyoming LLCs and trusts, do not guarantee protection against all claims, creditors, or losses. Outcomes depend on specific facts, jurisdiction, and applicable law.
Insurance products and services are offered through Xure Insurance or its affiliates.
Investment advisory services are offered exclusively through DAG Wealth, an SEC-Registered Investment Adviser (CRD No. 328627). Registration with the SEC does not imply a particular level of skill or training. Form ADV and Form CRS are available upon request or at www.adviserinfo.sec.gov.
Custody arrangements with third-party independent qualified custodians reduce certain risks but do not eliminate them.
Investing in digital assets involves risk, including the possible loss of principal. Digital assets are highly volatile and may not be suitable for all investors. Past performance is not indicative of future results.
Specific fee schedules, scope of engagement, conflicts of interest, and material business practices are disclosed in writing before engagement and in Form ADV Part 2A for the investment-advisory portion.
The information on this site is for general educational purposes and is not legal or tax advice.