A Fixed Indexed Annuity (FIA) does three things very well:

  1. They protect from any downside market risk.  You are guaranteed never to lose a dime of your principle and your gains in a Fixed Indexed annuity (not a variable annuity).
  2. They give you the ability to earn a fair rate of return on your deposit.  With uncapped products you have unlimited upside gains with no downside risk.
  3. You can access your funds either as a free withdrawal or through the use of a lifetime income rider. This guarantees that as long as you live, you will never outlive your assets. 

Let’s look at recent history of FIAs and the S&P 500.

From 2000-02 the S&P declined 47%; the NASDAQ declined 78%.

From 2007-09 the S&P declined 56%: a 60/40 blend of stocks and bonds declined 33%.

For a buy and hold investor it took almost 13 years- from March 2000-January 2013- just to recover what they had lost in the S&P downturns. They made nothing and would have seriously depleted their nest egg had they taken money out for retirement or emergencies.

During this same period,  FIAs outperformed the S&P 500. 

Annuities are a significant product with retirement investors.  Total U.S. annuity sales hit $58.7 billion in the fourth quarter of 2020 alone.[1]  In 2020 the total value of retirement assets in annuities was estimated at around $2.53 trillion.[2]

[1] Investment News, January 26, 2021.

[2] Statista, F. Norrestad, March 19, 2021

Here is a list of some of the reasons to select a Fixed Index Annuity as part of your estate:

  • It protects both your principal and your gains.
  • You don’t have to be concerned about market ups and downs.
  • You are able to participate in some of the market gains, but none of the loses.
  • You don’t pay any broker fees.
  • You will not lose sleep worrying about outliving your retirement.
  • You are able to pass the account value directly to your beneficiary.
  • You will have income for the rest of your life.
  • Your money will grow tax-deferred.
  • It has liquidity – you can draw up to 10% per year after the 1st year each year with no penalty.


Please contact us today to schedule a free, no-obligation review.