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If you are planning for retirement, you might have heard of or own annuities. They are often used as a regular income stream for those that have retired. There are several types of annuities to choose from with distinct benefits that suit individuals differently. Fiduciary retirement advisor Mike Reeves of Strategic Wealth Designers joined us on the newscast to discuss the dos and don’ts of annuities.

“The biggest don’t with annuities, is investing in a variable annuity,” Reeves says. “When planning for retirement, you’ll often hear us talk about reducing risk to protect your assets. The variable annuity does just the opposite with full exposure to the unpredictability of the stock market. Additionally, there are four to five times the amount of fees and expenses related to this type of tax-deferred annuity.”

We recommend fixed or indexed annuities. Fixed annuities are beneficial to have in your portfolio because they are tax deferred and do not have any fees. You will want to pay attention to the interest rate on this type of annuity. Indexed annuities are different because they allow you to participate in market upswings and not downturns. These annuities are also tax deferred and do not have fees, allowing you to grow your money efficiently.

“Indexed annuities require that anywhere between four to ten years must be waited before being able to access all your money,” Reeves says. “Additionally, there is a maximum gain that comes as a trade-off for not having to participate in the market downturns. Depending on your own financial plans and goals, the indexed annuity might not make sense for you.”

Annuities are a long-term investing tool commonly used by those planning for or in retirement. To see additional stories surrounding business and economic news for the Indianapolis area, visit  and if you have a question for Mike send an email to