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Can laddered fixed annuity save your retirement portfolio?

Before explaining the concept behind a “Laddered Fixed Annuity” I’d like to add that in some cases people have great experiences with fixed annuities, but it is also very often that people have poor experiences. In most cases those individuals who have had a bad experience with fixed annuities, had one for the same reasons that they might have had a bad experience with any other type of investment – when that investment was sold or structured incorrectly in relation to their investment needs or objectives. So in this blog post I’d like to address why having a Fixed Annuity Ladder can make sense to your overall retirement plan.

They come with both good parts and bad parts. For example, most people really like the idea of tax-deferred growth, safety of principal, guaranteed growth, and guaranteed income. However, they are not as excited about poor liquidity, irreversible decisions, and little or no real inflation protection. Therefore, we conclude that while annuities can certainly provide definite benefits to some clients, they can also create problems for others. The fact is that while fixed annuities have both good parts and bad parts, they certainly have their limitations as a stand-alone product.

However, suppose for a moment that instead of just simply purchasing a single fixed annuity by itself, what if these same fixed annuities could be structured within a more advanced strategy? What if by doing so we could substantially magnify the benefits that fixed annuities can offer, while at the same time reduce or even eliminate the negative features?

Laddered Fixed Annuity

Think about it this way for a moment: In the game of chess, individual chess pieces in and of themselves are nothing really special. However, place those chess pieces into the hands of a world champion chess player who is a master of using those pieces within an advanced strategy, and you will see incredible results. The same is true when it comes to using fixed annuities within a laddered annuity strategy.

So how exactly does a laddered fixed annuity strategy work?

The concept is actually surprisingly simple! First, instead of taking your asset and just purchasing one big annuity, we divide your nest egg into smaller, more easily manageable fixed annuities called “legs” that are each designed with a specific purpose. We then deposit the correct mathematical amount into each leg and structure these legs in the proper sequence. Some legs are designed to pay you income, and some legs are designed to keep replenishing your nest egg’s original balance.

The effect is that you will have an indefinite stream of retirement income that keeps pace with inflation, and you never deplete your original principal. The last “leg” in line is always designed to re-grow your original principal by the time you get to it, and since we are only using guaranteed interest rates, there is no question that your money will be there when you need it.


This entire process becomes a self-funding mechanism that is specifically designed so that you will not run out of money. Furthermore, because we only use short term deferred fixed annuities, you never have to lock into an irreversible decision, your nest egg is never tied up at low “payout rates”, and every couple of years you have the option of either walking away with your entire principal penalty-free, or continuing with the program and watching your monthly income keep getting bigger.

Now, instead of just purchasing a single investment product, you have an actual strategy for providing yourself with a steadily rising retirement income stream while at the same time never depleting or forfeiting your principal. This is how fixed annuities can be used so that the good features are magnified and the bad features are reduced or even eliminated entirely!

Is A Laddered Fixed Annuity Portfolio Right For Me?

The only way to know for certain is to schedule a live demo of which a financial advisor who is specifically trained in this type of planning process.

If you wonder whether scheduling such an appointment would make sense for you personally, ask yourself these questions: 

  • Would I like to have my portfolio redesigned so that it will never lose money, never run out of money, increase my retirement income and reduce my taxes at the same time – all without fees?
  • Would I like the peace of mind of knowing that I can literally spend my entire life savings over the next 15-20 years, and at the other end still have every dollar that I started with?
  • Would I like to have a safe, guaranteed retirement income stream that keeps getting bigger over the years while at the same time my nest egg never gets smaller?
  • Would I like a retirement income plan that will not be negatively impacted by a stock market collapse or terrorist attack?

If you answered yes to any or all of these questions, then we would encourage you to schedule a meeting with Certified Financial Planner™ Professional now to run the numbers and create a Retirement Income Analysis customized for your specific situation.There is absolutely no cost or obligation, and you won’t have to worry about a high pressure sales pitch. Allow yourself to become educated about this powerful option for generating a lifetime of safe, flexible retirement income.

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