Could I lose money in an annuity?

Not to the market with a fixed or fixed indexed annuity: your principal is protected from market drops. The guarantees depend on the financial strength of the insurance company behind the annuity.

More detail

Here's what that means in practice. Say the stock market has a bad year. With a fixed or fixed indexed annuity, the money you put in doesn't drop along with it. That protection is the main point of this kind of annuity.

Since the guarantees depend on the company that issues the annuity, its financial strength matters. Independent rating agencies grade insurers, and a top rating is a sign of strong financial stability. I'll show you the ratings of any company we consider.

A common misunderstanding is mixing up the guaranteed minimum rate with the current rate. The current rate can change. Ask about both, in writing.

Also keep in mind that "protected from market losses" doesn't mean you can take out any amount at any time without cost. Taking money out early can bring surrender charges.

What to have ready: how much you want to put in, when you may need it, and your other savings.

If you'd like to see how a specific annuity protects your money, I'll walk you through the contract.