Often cloaked in jargon and misconceptions, annuities are a complex financial instrument with fees, surrender charges, and other complexities. Therefore, if you’re considering adding annuities to your retirement portfolio, you should arm yourself with knowledge.
In order to make it easier for you to navigate the annuity topic, we compiled a list of the 12 best annuity books. With the help of these books, you can make informed decisions by gaining valuable insights, explanations, and strategies.
1. “Annuities For Dummies” by Kerry Pechter
With “Annuities For Dummies,” first published in 2008 and updated in 2023, you’ll be able to turn your retirement savings into a reliable income stream. Having worked in annuities and retirement planning for over 25 years, author Kerry Pechter offers unparalleled insights and expert guidance on:
- Finding the right annuity for you.
- How to avoid costly annuity mistakes.
- Making the most of your retirement income.
- Keeping your savings safe.
- Putting off taxes and securing long-term care coverage.
Because of this, “Annuities For Dummies” helps you stretch your savings, reduce anxiety, and take charge of your finances. Whether you’re just getting started with annuities or already managing your savings, this book is your essential guide.
2. “Unlocking the Annuity Mystery: Practical Advice For Every Advisor” by Scott Stolz CFP®
Annuities can be a polarizing topic. You’ll find people who are enthusiastic fans and others who are staunch critics. However, these strong opinions are often based on misunderstandings. As is often the case, the truth lies somewhere in the middle.
The right annuity can help address specific retirement financial challenges. But it’s not a one-size-fits-all solution. In fact, misuse of annuities can create more problems than they solve.
This book, written by Scott Stolz, MD of iCapital, provides an overview of annuities based on his 35 years of experience in the insurance and annuity industries. Previously, he oversaw an 8,200-member network of financial advisors for Raymond James Insurance Group. As such, you’ll find this to be an easy read while providing practical insights into their role in your retirement plan.
3. “The Truth About Buying Annuities” by Steve Weisman
Tired of annuity sales pitches? This book is a straightforward guide to annuities. As a college professor at Bentley University, a nationally recognized expert in scams, identity theft, and cybersecurity, and a lawyer, Steve Weisman has no stake in this industry. As a result, he provides an unbiased perspective on these complex financial products. Whether you own an annuity, are considering one, or simply want to understand them, this book will help you make informed decisions.
However, its unique format is a standout. The book is divided into 50 brief chapters that provide a clear and complete overview in just a few minutes.
You’ll also learn about different types of annuities, from fixed to variable, immediate to deferred. Each chapter objectively weighs the pros and cons to empower readers to make informed decisions.
4. “The Retiree’s Complete Annuity Handbook: Everything You Need to Know Before Buying an Annuity” by Scot Whiskeyman
There was a time when retirement wasn’t so complicated. However, longer life expectancies, volatile markets, and overwhelming financial advice make planning for the golden years tricky today. But annuities promise a simple solution: lifelong income.
However, the annuity market is very complex and confusing. With so many options and hidden fees, it is easy for customers to make costly mistakes.
As such, you should know the facts before buying an annuity. Thanks to this book, you can sort through the confusion and make informed decisions about your retirement income, thanks to a wealth of information.
In this handbook, Scot Whiskeyman, CFP®, a registered financial advisor registered as an IAR (Investment Advisor Representative), provides a comprehensive overview without being overwhelming.
5. “The Advisors Guide to Annuities” by Michael E. Kitces and John H. Olsen
“The Advisor’s Guide to Annuities,” written by Michael E. Kitces, MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL and financial planner John L. Olsen, CLU, ChFC, AEP, is a comprehensive guide for people new to annuities. You’ll learn how annuities work and how to use them in financial planning.
Specifically, this book covers:
- The different types of annuities.
- Analyzing annuities’ pros and cons.
- The tax implications of annuities.
- Annuities and their effects on owners and beneficiaries.
Overall, it is designed to assist financial advisors and clients in understanding and comparing annuities.
6. “John Olsen’s Guide to Annuities for the Consumer” by John Olsen
Another John Olsen book makes this list with a revised and expanded edition of his highly-regarded guide. Unlike many books on annuities, this book examines how they work and when they should be considered.
The book focuses on educating consumers about annuities, explaining complex concepts in simple terms. You will learn about annuity features, costs, and how to choose the right annuity.
7. “How to Make Your Money Last – Completely Updated for Planning Today: The Indispensable Retirement Guide” by Jane Bryant Quinn
Do you wish you could retire stress-free with a steady income? You’re not alone. Budgeting and planning are easier when your income stream is predictable.
Jane Bryant Quinn outlines a roadmap to achieving this goal in her comprehensive guide. Providing practical advice for managing your retirement finances, Quinn covers Social Security, pensions, retirement plans, savings, housing, and healthcare costs. In addition, she emphasizes the importance of making safe investments and tailoring your financial strategy to your retirement stage.
What does this have to do with annuities? In the updated 2020, Quinn has a change of heart regarding annuities — specifically, a low-cost, single-premium, immediate-payment annuity that pays a monthly income to you or your spouse for your lifetime.
“A simple, low-cost, single-premium, immediate-pay annuity that pays monthly income for you or your spouse for life,” she explains.
She adds that in order to grow your investments, you need to own them. With two or three well-diversified stock-owning mutual funds, we can share in that growth without breaking a sweat.
“I developed a new respect for immediate-pay annuities that convert a lump sum of savings into an income for life.” Ultimately, freedom of mind and action comes from knowing one’s income will last a lifetime.
8. “The New Retirement: A Paradigm Shift” by The Annuity Guys
This book discusses retirement planning in depth, focusing strongly on annuities. The book covers various annuity types, choosing the right one, and working with a financial advisor.
Bringing together years of research and hands-on experience, “The New Retirement: A Paradigm Shift” meets retirement’s pressing challenges. Through personal consultations, newsletters, websites, seminars, and customer correspondence, the Annuity Guys, aka Dick Eric, have shared decades of expertise as multidisciplinary financial advisors.
This book can serve as a foundational guide, a deeper exploration tool, or a practical reference for someone navigating retirement planning, understanding annuity options, and learning advanced strategies.
9. “I Didn’t Know Annuities Could Do That!: Worry-Free Strategies to Thrive in Retirement” by Mark J. Orr CFP
You can’t just hope for the best in retirement. What if stocks crash? There’s a spike in inflation? Taxes go up? How about when Social Security runs out?
In reality, either your money outlives you, or you outlive your money. It’s either one or the other. However, Mark J. Orr, an experienced financial advisor with over two decades of experience, has guided individuals throughout the country in building a secure financial future without compromising their present. And that’s exactly what he does in his book, “I Didn’t Know Annuities Could Do That! ”
Annuities might be the key to a secure retirement, according to Orr. In this book, we learn how annuities can:
- Protect your savings from market downturns.
- Maintain your principal without draining it.
- Reduce the risk of bonds while outperforming them.
- Make lifetime income guaranteed instead of the unreliable 4% rule.
This book will help you understand how well-structured annuity plans can improve your financial future.
10. “How To Not Get Ripped Off When Buying an Annuity” by Alessandra Derniat
I cannot emphasize this enough. Investing in annuities can be an effective way to provide income in retirement. However, understanding them can be challenging. Luckily, Alessandra Derniat, a Certified Annuity Specialist (CAS(R)) and multi-state life insurance agent helps clarify the confusion, empowering you to make the right financial decisions.
After reading “How To Not Get Ripped Off When Buying an Annuity,” you will learn:
- The basics of annuities, as well as their benefits and drawbacks.
- The key to evaluating annuities is identifying the factors that should be considered.
- Recognize red flags and avoid misleading advice by recognizing sales tactics.
- Choose the right annuity by following a simple, four-step process.
This book offers clear, easy-to-understand explanations of annuities in easy-to-understand language. As such, if you’re considering a fixed annuity or simply want to learn more, you’ll gain the knowledge you need to protect your hard-earned savings.
11. “Don’t Start a Side Hustle!: Work Less, Earn More, and Live Free” by Brian Page
In “Don’t Start a Side Hustle,” Brian Page challenges traditional financial wisdom. Rather than the endless grind, Page, an expert in passive income, promotes passive income vehicles (PIVs) that generate income without constant effort. By becoming a passive entrepreneur, readers can escape the 9-to-5, create multiple income streams, and live their way. As a result of Page’s practical advice, readers can work less, earn more, and achieve lasting financial independence.
According to Page, you should diversify your portfolio with multiple passive income streams, including rental income, stocks, or digital products such as online courses. Annuities also fall under this category. It’s important to compare different options before investing in annuities, as Page points out that they can carry high fees. Additionally, you won’t be able to access your money until the annuity matures, so it’s important to save enough money in advance.
Although this book isn’t specifically about annuities, if you understand the restrictions and fees involved, you may find annuities to be an excellent passive income investment.
12. “Getting Started in Annuities” by Gordon K Williamson
This book remains a valuable guide for newcomers despite its publication in 1998. Among the topics explained are:
- A description of annuities and how they work.
- A comparison of the different types of annuities.
- Comparing annuities with other investment options.
- Data on performance, sample portfolios, and legal protections.
- Annuities and tax laws.
In this book, Gordon Williamson offers expert insight based on his experience. He’s also written over 15 books on annuities, mutual funds, and other investment topics. Including “The 100 Best Annuities You Can Buy” and “All About Annuities: Safe Investment Havens for High-Profit Returns.”
Conclusion
If you’re considering annuities, research and consult a professional before making a financial commitment. Moreover, you should consult with a financial advisor before making any investment decisions. This blog post provides information about annuities.
FAQs
Are annuity books essential? Can’t I just get information online?
An annuity book can provide a comprehensive, in-depth review of the subject, even though plenty of information is available online. You can also use it as a reference for future questions.
Are there truly “best” annuity books?
There’s no one “best” book, but some are better for specific reader types, more comprehensive, or easier to understand. As such, choose a book that aligns with your knowledge level and needs.
What should I look for in an annuity book?
For an annuity book to be good, it should:
- Provide a clear explanation of the different types and features of annuities.
- Describe the terms and conditions of annuity contracts in detail.
- Give practical advice on how to choose an annuity.
- Consider both the risks and the benefits.
- It should be written in a clear, understandable style.
Can annuity books replace professional advice?
No.
The information in books can be valuable. However, they cannot give you personalized advice based on your own financial situation. You should always consult a qualified financial advisor before purchasing an annuity.
Image Credit: Yan Krukau; Pexels
