Ep 84: Who Should Consider An Annuity?

Common Sense Financial Podcast

Show Notes

The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?

And are they a valid option for those planning their retirement?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian’s “unpopular opinion” and why annuities and investments aren’t in competition.

Plus, Brian reveals what he considers the best way to accumulate wealth.

  • You need to keep in mind that there are plenty of unknown factors in your life, such as how long you’re going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
  • Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
  • Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
  • According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
  • Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
  • In his own words, Brian has an “unpopular” stance: he’s a believer in the fact that whether or not someone should use an annuity depends on their situation.
  • Brian touches upon when it makes sense for you to use an annuity and when it doesn’t.
  • “Capital appreciation over time” is what Brian considers the best way to accumulate wealth.
  • Brian explains that annuities and investments aren’t in competition, because they both have a place at different times in someone’s life, depending on their needs.
  • Brian goes over four common annuity-related myths.

Mentioned in this episode:


Common Sense Financial Podcast on YouTube

Common Sense Financial Podcast on Spotify


Brian’s article: My 5-Minute Retirement Plan

Brian’s article: The Financial Fiduciary Standard Explained

Brian’s article: What to Do With Cash in a Low Interest Rate Environment

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

BUILD Banking™️ is a DBA of Skrobonja Insurance Services, LLC. Benefits and guarantees are based on the claims paying ability of the insurance company. Not FDIC insured. Results may vary.

Any descriptions involving life insurance policies and its use as an alternative form of financing or risk management techniques are provided for illustration purposes only, will not apply in all situations, may not be fully indicative of any present or future investments, and may be changed at the discretion of the insurance carrier, General Partner and/or Manager and are not intended to reflect guarantees on securities performance.

The term BUILD Banking™️, private banking alternatives or specially designed life insurance contracts (SDLIC) are not meant to insinuate that the issuer is creating a real bank for its clients or communicating that life insurance companies are the same as traditional banking institutions. This material is educational in nature and should not be deemed as a solicitation of any specific product or service. BUILD Banking™️ is offered by Skrobonja Insurance Services, LLC only and is not offered by Madison Avenue Securities, LLC. nor Skrobonja Wealth Management, LLC.

Any references to protection, safety or guarantees, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Skrobonja Insurance Services, LLC does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.

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