How This 56-Year-Old Couple Refinanced Their Annuity for 15% More Guaranteed Income — With Lower Fees and No Market Risk
(don’t forget to checkout the video of this blog too)
Cody and Shawna, both 56, came to me with a smart question:
“Is there a better income option than the annuity we bought 10 years ago?”
They weren’t in trouble.
In fact, their variable annuity had grown nicely over the past decade and was now valued at $1.2 million.
But they were beginning to shift their priorities as retirement approached.
Their two main goals?
✅ Reduce their exposure to market volatility
✅ Maximize guaranteed income they could count on for life
Here’s how we helped them achieve both — without losing a dime.
🔍 Reviewing Their Current Annuity
Cody and Shawna’s existing annuity was:
- A variable annuity, meaning it was still exposed to market ups and downs
- Set to provide $10,000/month in guaranteed income at age 64
- Carrying annual fees just over 3%
- Based on a single life payout, meaning the income would stop after one of them passed
It wasn’t a bad product for when they purchased it.
But with no surrender charges now, they had flexibility to explore better-suited options.
💡 Exploring a Better Strategy
After a full analysis, we found a modern income-focused annuity option that significantly improved their situation:
- $11,476/month guaranteed income in 8 years — nearly 15% more than their current annuity
- 8% guaranteed growth rate on their income base each year
- Joint life coverage, so both Cody and Shawna are protected for life
- Only 1% annual fees (down from 3%)
- No market risk — the value can’t go backwards
- And best of all… no penalties or costs to make the switch
✅ Why Refinancing Made Sense for Them
This wasn’t just about chasing higher numbers.
It was about aligning their retirement income strategy with what matters most to them now: predictability, efficiency, and long-term peace of mind.
By refinancing their annuity, they were able to:
🔥 Eliminate market exposure on these dollars
🔥 Lock in an 8% annual income base increase
🔥 Guarantee more income for both of them — for life
🔥 Cut fees by two-thirds
🔥 Upgrade without any surrender penalties or costs
🚨 When Does Annuity Refinancing Actually Make Sense?
Not all annuity exchanges are smart moves.
High surrender charges or loss of valuable guarantees can be costly if you’re not careful.
But in Cody and Shawna’s case, there were no penalties, and the benefits — more income, lower fees, better structure — were crystal clear.
If you’ve held an annuity for several years, especially a variable annuity with high fees or single life income protection, it may be worth reviewing your options.
Your retirement goals change. Your annuity should evolve with them.
Let’s Chat: If you’re curious whether your annuity still aligns with your retirement plan, feel free to reach out.
Sometimes small changes today can lead to much stronger income for tomorrow.
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Enjoy this blog? You’ll probably enjoy this one as well: How This 64-Year-Old Couple Retired with $15,000/month — And Is Still Building Wealth
P.S. Make sure you checkout my new one-page Long-term Care guide.
To your success,
Matt
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