When you’re creating a financial plan, there is no one “best” product. But there are products that can be a better fit in order to help meet your goals for retirement, whether you’re experienced or just getting started.
We wanted to show you a “risk scale” so you could actually see how each annuity measures up.
For instance, we have been getting a lot of questions about Fixed index annuities (FIAs). FIAs are insurance products that have grown in popularity, especially since the Financial Crisis of 2008. As a new generation of savers are drawn to growth potential and protection from market downturns. Take a look at where FIAs fit with other products in light of risk.
According to the SEC, there are generally three types of annuities — fixed, indexed, and variable. In a fixed annuity, the insurance company agrees to pay you no less than a specified rate of interest during the time that your account is growing. The insurance company also agrees that the periodic payments will be a specified amount per dollar in your account. These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse.(1)
We hope that this brief article was helpful for investor education regarding annuities, especially Fixed Indexed Annuities (FIAs)
If you would like a no obligation, second opinion into your current annuity or you’re considering purchasing an annuity to see if it fits for your financial plan give us a call at 630-799-8350 or email at info@crosspointwealth.com. We look forward to the opportunity to show where we can help and earn your business.
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For more information on this topic there is a website called www.investor.gov and a bulletin regarding FIAs can be found here https://www.investor.gov/additional-resources/news-alerts/investor-bulletin-indexed-annuities
1)https://www.sec.gov/fast-answers/answersannuityhtm.html
Fixed Index Annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although Fixed Index Annuities guarantee no loss of premium due to market downturns, deductions from your Accumulation Value for additional optional benefit riders could under certain scenarios exceed interest credited to the Accumulation Value, which would result in loss of premium. They may not be appropriate for all clients.
