Flip-Flops, SPF... and Fixed Income? Why Annuities Might Be Your Ultimate Beach Read This Summer

June is Annuity Awareness Month—and yes, that’s a real thing! While the word "annuity" might not scream summer romance or island mystery, don’t be too quick to toss it aside like last year’s sunscreen. In fact, understanding annuities could be the plot twist your future self thanks you for.

Chapter One: Meet Your New Favorite Financial Character—The Annuity

Imagine you're lounging under a beach umbrella. Your biggest concern? Whether to read one more chapter or take a dip. That kind of peace-of-mind doesn’t have to end with vacation, and that’s where annuities come in.

An annuity is a financial product that provides a steady stream of income, typically during retirement. You pay in now, and later, it pays you back, like a beachside piña colada that just keeps refilling itself.

There are different types:

• Fixed annuities – predictable and consistent, like your favorite beach towel.

• Variable annuities – a little more adventurous (think parasailing), with payouts based on market performance.

• Indexed annuities – tied to the market, but with built-in safety nets (sunburn-proof, if you will).

Chapter Two: Why They’re a Summer Staple (Even If You're Not Retired Yet)

Annuities aren’t just for retirees, just like SPF isn’t just for kids.

They can:

• Provide guaranteed income in retirement (hello, hammock naps).

• Protect against outliving your savings (because your golden years should be golden).

• Add diversity to your financial beach bag (beyond your 401(k) and IRA).

Chapter Three: Plot Twist—They're Not for Everyone

Just like not everyone loves a mystery novel, annuities aren’t a one-size-fits-all solution. Talk to a financial advisor who understands your whole story, not just one chapter.

But if you're looking for a way to turn some of today’s savings into tomorrow’s income, and you like the idea of financial security that lasts longer than your beach tan, they might just be your next great read.

Final Thought from the Tiki Hut:

So while you’re catching waves and finishing that thriller, take a moment to think about your future self. The one who wants to sip coffee slowly, travel often, and not stress about running out of money.

Continue your beach read here: Annuities