Fixed indexed annuities can be a powerful tool for principal protection, making them attractive for clients nearing or in retirement.
A Commission-Free FIA can give clients’ assets complete downside protection with non-correlated exposure to the market.
Research by Roger Ibbotson found fixed indexed annuities outperformed bonds over time by about 10%.
Fixed indexed annuities should be considered as an alternative to bonds to de-risk portfolios from equities as clients near retirement.
Principal Protection Products
Annuities are perhaps the only way to mitigate longevity risk, but they also are a more efficient means of generating retirement income. Annuities can quickly outperform fixed income in generating retirement income, and provide payouts long after fixed income portfolios would be depleted.
|Structured Variable Annuity||
Solves for Principal Protection, Retirement Income
Structured Variable Annuities (SVAs) are tax-deferred insurance vehicles that provide a defined degree of upside potential with a defined degree of downside protection from potential downturns in the market. The investor assumes the portion of the market risk that is in excess of the "buffer" or the initial losses before reaching the...
|Fixed Indexed Annuity||
Solves for Retirement Income, Principal Protection, Annuity Rescue+
Fixed indexed annuities are tax-deferred insurance products that provide market upside, while protecting principal from market losses. Assets are allocated into indices that are designed to replicate market performance. These indices are typically accompanied with cap rates, spreads, or participation rates.
Solves for Retirement Income, Principal Protection, Tax Deferral
Fixed annuities are tax-deferred insurance vehicles that provide a guaranteed minimum fixed rate of return that is typically reset on an annual basis. Some types of fixed annuities, known as multi-year guaranteed annuities (MYGAs), can offer a fixed rate of return for the duration of the product. Fixed annuities provide tax...
|Single Premium Immediate Annuity||
Solves for Retirement Income, Principal Protection
A single premium immediate annuity is a contract funded with a single lump-sum payment (premium) in exchange for guaranteed income payments. Designed to supplement retirement income, a SPIA insures the purchaser against outliving their money or exhausting it within a certain timeframe. A SPIA can begin paying income immediately, bypassing...