Yes, annuity earnings can trigger the 3.8% net investment income tax when your MAGI is over the IRS threshold and the payment isn’t from a qualified plan. If you’re using an annuity for predictable cash flow, the tax layer can feel sneaky. The net investment income tax (NIIT) is a 3.8% surtax that sits on […]

No, annuities aren’t SIPC insured; SIPC replaces missing brokerage securities and cash after a broker fails, not an insurer’s annuity promise. Annuities confuse people because they’re often sold through a broker-dealer, then show up on the same statement as stocks and funds. Add one more ingredient—SIPC logos on brokerage sites—and it’s easy to think every

Annuities can act like investments, yet many annuities are insurance contracts with payout rules and limits. Annuities get marketed like “an investment that can pay you later.” That wording blurs what you’re buying. At its base, an annuity is a contract with an insurance company. The contract spells out how money can grow, when you

Some annuities have stock-market exposure through investment subaccounts, while others credit interest without putting your money in stocks. If you’re asking “are annuities invested in the stock market?”, you’re trying to pin down one thing: will your balance swing with the market, or stay steadier? “Annuity” is an umbrella term. Under it sit contracts that

No, annuities aren’t insured by the U.S. government like bank deposits, but state guaranty associations may cover part of your contract if an insurer fails. If you’re buying an annuity, you’re betting on the insurer’s ability to keep paying what it promised. You want to know what happens if it fails or the fine print

No, are annuities insured by FDIC? No—FDIC insurance insures bank deposits, not annuity contracts issued by insurance companies. If you’re shopping for an annuity, that one detail changes how you judge risk. People see an annuity sold through a bank and assume the FDIC safety net follows. It doesn’t. Annuities sit in the insurance lane,

Are Annuities A Wise Investment? depends on the contract: they can trade growth for steady income, fees, and limits on cash access. Annuities sit in a middle ground. People buy them for predictable checks. Regret shows up when costs and lockups hit. This guide helps you decide if an annuity fits for your needs, and

Are annuities federally insured? No, annuities aren’t covered by FDIC or SIPC; protection comes from the insurer and state guaranty associations. That’s the core point. If you’re shopping for an annuity, ask this early: are annuities federally insured? The answer shapes how you compare insurers and how much you keep with one company. What “Federally

Word count: 1641 No, annuities are insurance contracts, but they aren’t life insurance policies; they’re built for income, not a death benefit. If you’re sorting retirement income, estate paperwork, or a new product pitch, this question pops up fast. Here’s the clean split: life insurance pays after death; an annuity pays during life, often as

Annuities and 401(k)s solve different problems: 401(k)s excel at low-cost growth, annuities fit when guaranteed income matters. If you’re weighing an annuity against a 401(k), you’re choosing between two job descriptions. A 401(k) is a workplace savings engine built for investing over decades. An annuity is a contract, sold by an insurer, that can trade