Fixed index 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 index annuities outperformed bonds over time by about 10%.
Fixed index annuities should be considered as an alternative to bonds to de-risk portfolios from equities as clients near retirement.
Principal Protection Products
|Registered Index Linked Annuity||
Registered Index Linked Annuities (also known as Structured Variable Annuities or Buffer Annuities) are tax-deferred insurance vehicles that provide upside potential with a defined degree of downside protection. The investor assumes the portion of the market risk that is in excess of the "buffer" or the initial losses before reaching the...
|Fixed Index Annuity||
Fixed index 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 fixed index annuity indices are typically accompanied with cap rates, spreads, or participation rates.
|Multi-Year Guaranteed Annuity||
Multi-year guaranteed annuities (MYGAs) offer a tax-deferred guaranteed rate of return for the duration of the product. These simple, short-duration annuities are often used by advisors for fixed income allocations.
Fixed annuities are simplified products, offering a tax-deferred guaranteed fixed rate of return for a specified period.