Are you seeking an investment option that combines growth potential and principal protection? Look no further than the fixed indexed annuity (FIA). This tax-deferred, long-term savings vehicle offers a unique balance of benefits, providing you with the opportunity for growth while safeguarding your principal during market downturns. In comparison to a fixed annuity, an FIA offers greater growth potential, and when compared to a variable annuity, it presents lower risk and potential returns.
The returns of a fixed indexed annuity are linked to the performance of an underlying index, such as the widely recognized S&P 500® Composite Stock Price Index. This index comprises 500 stocks, providing diversification and representing a broad segment of the market. While the index tracks the market, your invested funds in an FIA are never directly exposed to stock market volatility, ensuring a level of protection.
It is important to note that while a fixed indexed annuity provides the potential for growth, it also comes with certain limitations. Your returns may be subject to factors such as participation rates, caps, and fees, which can restrict your full participation in market gains. Additionally, FIAs are designed as long-term savings vehicles, and early withdrawals may be subject to surrender charges. Therefore, carefully reviewing the terms, features, and risks of an FIA is crucial before making any investment decisions.
When considering a fixed indexed annuity, it is advisable to consult with a financial professional who can assess your specific financial goals and circumstances. They can help determine if an FIA aligns with your investment objectives and provide guidance on the suitability of this product for your financial portfolio.
Important information: Fixed Indexed Annuities are insurance contracts and are not a securities product. Indexed annuities are a complex product and complicated investment vehicles and methods used to credit interest vary widely and are complicated. It is important to understand you will not receive the entire return of the market index they are tied to. The products have surrender charges and different layers of fees and are not easily liquid without incurring surrender fees.
An annuity is a contract you purchase from an insurance company, designed for the long-term. The values will fluctuate based on investment option performance. Annuities have restrictions and limitations, and fees and charges will vary based on the product. You may be charged a penalty if you take your money out early. Withdrawals may be subject to ordinary income taxes, and if you are under age 59½, you may pay a 10% federal tax penalty. All guarantees and protections are subject to the claims-paying ability of the issuing insurance company.
