Annuities Built Around Income You Can Count On
A well-structured annuity can turn accumulated savings into dependable retirement income — without exposing your principal to market risk. I help pre-retirees and retirees in North Idaho, Spokane, and across the Pacific Northwest evaluate whether annuities belong in their retirement plan, and which type fits their goals.
About Annuities
Two Types of Annuities. One Goal: Reliable Retirement Income.
Not every annuity works the same way, and the right choice depends on your income needs, timeline, and tolerance for market exposure. I work with two categories of safe-money annuity products — each designed to support a different piece of your retirement picture.
Fixed Indexed Annuities
Fixed indexed annuities link your growth potential to a market index — such as the S&P 500 — while protecting your principal from market losses. You participate in a portion of market gains in strong years, and your account value doesn't decline when markets drop. For clients who want growth potential without the downside risk, this is often the most useful tool in the conversation.
Fixed Annuities
Fixed annuities offer a guaranteed interest rate for a set period — predictable, straightforward, and completely insulated from market fluctuation. If your priority is capital preservation and a known return, a fixed annuity provides exactly that. These are particularly well-suited for clients who want a portion of their savings working at a guaranteed rate while other assets remain invested.
Are Annuities a Good Idea for Retirement?
The honest answer is: it depends on your situation. Annuities are not the right tool for every dollar or every client — but for the right portion of a retirement portfolio, they solve a problem that few other products can.
The core problem they solve is sequence-of-returns risk: the danger that a significant market decline early in retirement permanently reduces the income your savings can generate. When a portion of your income is guaranteed regardless of what markets do, you can let your other assets recover without being forced to sell at the wrong time.
I use annuities selectively, as part of an integrated retirement income strategy that also accounts for Social Security timing and Roth conversion planning. The goal is never to over-annuitize — it's to create a reliable income floor that supports everything else.
How Annuities Fit Into a Broader Retirement Income Plan
An annuity doesn't operate in isolation. The most effective retirement income plans layer guaranteed income sources — Social Security, annuity income, and in some cases pension income — to cover essential expenses, then position remaining assets for growth and flexibility.
Here's how I typically think through the role of annuities in a retirement income plan:
Step 1: Income Gap Analysis
I start by mapping your projected essential expenses against your guaranteed income sources — Social Security, any pension, and other reliable income. The gap between those numbers is what we're designing around.
Step 2: Product and Structure Selection
If an annuity is appropriate, I evaluate which type — fixed or fixed indexed — fits your timeline, liquidity needs, and income goals. Product selection is driven by your plan, not by product availability.
Step 3: Integration With Social Security and Roth Planning
Annuity income interacts with Social Security timing decisions and Roth conversion strategies in ways that affect your tax picture in retirement. I coordinate all three so the plan works as a whole, not as separate pieces.
Why Choose Kerfoot
Why Work With an Independent Advisor on Annuities
Annuities are sold widely — by banks, insurance companies, and large broker-dealers — and the product you're offered often reflects what the distribution channel carries, not what fits your retirement plan.
As an independent CFP® with 24 years of experience, I'm not aligned with any single carrier or product family. I evaluate annuity options across the market and recommend only what serves your income and principal-protection goals. You work directly with me — not a call center, not a rotating associate — from the first conversation through implementation and beyond.
Clients in Post Falls, Coeur d'Alene, and Spokane come to me specifically because they want a retirement income plan built around their situation, not a product pushed through a distribution pipeline.
Frequently Asked Questions About Retirement Annuities
What type of annuity is best for retirement income?
For most retirees focused on income, a fixed indexed annuity or a fixed annuity with an income rider is worth evaluating. Fixed annuities offer a guaranteed rate and predictable growth. Fixed indexed annuities offer principal protection with upside potential tied to a market index. The right choice depends on your income timeline, how much flexibility you need, and how your annuity fits alongside Social Security and other income sources. I evaluate both in the context of your full retirement plan before making any recommendation.
Are annuities safe?
Fixed and fixed indexed annuities are considered safe-money products because your principal is protected from market losses. They are backed by the claims-paying ability of the issuing insurance company, not by FDIC insurance, so carrier strength matters. I work with established, highly-rated carriers and review financial strength ratings as part of the selection process.
How much of my retirement savings should go into an annuity?
There's no universal answer — it depends on your income gap, your other assets, and your liquidity needs. A common approach is to use annuities to cover essential expenses not already met by Social Security or pension income, then keep remaining assets invested for growth and flexibility. Over-annuitizing can limit your options; under-annuitizing leaves income risk on the table. Getting that balance right is exactly what the planning process is designed to do.
Can I lose money in an annuity?
With fixed and fixed indexed annuities, your principal is protected — you cannot lose money due to market performance. You will not earn gains in down years, but your account value will not decline because of market losses. Surrender charges may apply if you withdraw funds before the contract's surrender period ends, which is why liquidity planning is part of the conversation before any annuity is purchased.
Do annuities make sense if I already have Social Security income?
They can — and for many clients, Social Security and annuity income work well together. Social Security covers a portion of retirement expenses; an annuity can fill the remaining gap between that income and your actual spending needs. The interaction between annuity income, Social Security timing, and Roth conversions also has tax implications worth planning around. I look at all three together rather than in isolation.
An annuity is a long-term financial product designed largely for asset accumulation and retirement needs. Annuities generally contain fees and charges which include, but are not limited to, surrender charges, administrative fees and for optional contract riders and benefits. Withdrawals and death benefits are subject to income tax. If withdrawals and other distributions are received prior to age 59 ½, a 10% penalty may apply. All guarantees of a Fixed Annuity are backed by the claims paying ability of the issuing insurer.
