Why Some Retirement Products Can Trap Your Savings, Ep 187

Most people gearing up for retirement are heads-down, focused on building savings. But there’s one important thing they don’t consider: what happens to your money once it’s “locked away” in certain retirement products. In this episode, Gregg Gonzalez digs into annuities – what they are, why they’re sometimes pitched so hard, and how they can quietly trap your savings if you’re not careful. If you’re assuming a big 401(k) or IRA balance will mean total freedom in retirement, it’s time for a closer look.

He breaks down the four types of annuities, the fine print you need to watch for, and the difference between a tool that fits your goals and one that could slow you down. He shares real-world examples of how well-meaning people end up in bad products, and why working with someone who’s truly on your side (not just selling something) can make all the difference.

By the end, you’ll not only be able to spot the traps, you’ll know exactly what questions to ask, what options to consider, and how to move forward with a retirement strategy that matches your life, not just a sales pitch.

You will want to hear this episode if you are interested in…

• (00:00) Why some retirement products can trap your savings.
• (03:24) Announcement of upcoming Social Security seminars and webinar idea.
• (05:24) Setting up today’s focus: common misconceptions about annuities.
• (6:00) Breakdown of the 4 main types of annuities and when they might fit.
• (19:20) Listener Q&A: Social Security spousal benefits and retirement savings questions.
• (31:30) Closing thoughts on aligning retirement goals with financial behavior.

The Annuity Trap: Why Some Retirement Tools Aren’t What They Seem

When people get closer to retirement, it’s easy to assume that anything sold as “safe” or “guaranteed” must be a good fit. But the truth is, not all annuities are created equal. Some can quietly strip away your flexibility, lock up your money for years, and offer returns that don’t keep pace with inflation. I recorded this episode because I kept seeing good people walk into bad contracts, not because they made a mistake, but because they weren’t shown the full picture.

Breaking Down the Four Types of Annuities (and How to Tell If One’s Right for You)

There’s no “good” or “bad” annuity without first understanding the type you’re looking at. Immediate annuities act like buying your own pension, and for some folks who need guaranteed income, they can work. Fixed annuities are more like a tax-deferred alternative to CDs – a conservative option if you don’t need quick access to your cash. Indexed annuities offer a slice of market upside without downside risk, but you’ve got to read the fine print carefully. And variable annuities, the ones with all the riders and fees, are the ones I tell people to approach with real caution.

Each has its place, but the bigger question is whether it fits your goals and timeline. No one should feel “sold” into a product you don’t fully understand. When people take the time to look at what they’re really buying, the cost, the liquidity restrictions, the real guarantees, they’re a lot less likely to get trapped in something they’ll regret later.

Building a Retirement Plan That Keeps You in Control

I built Retire Strong Financial Advisors on one belief: your retirement should be designed around your life, not around a product someone’s trying to sell you. Annuities can sometimes help, but they’re just one tool out of many, and sometimes the best move is walking away from them entirely. I want everyone I work with to have confidence, clarity, and real control over their future, without feeling stuck in a plan that no longer fits.

Resources & People Mentioned

• 3 Steps to Retirement Planning
• Fidelity Retirement Savings Study