The Fixed Indexed Annuity provides the combination of both SAFETY from principal loss in negative market years plus the opportunity UPSIDE GROWTH POTENTIAL in good market years. The Indexed Annuity is the only product that gives both.
Additional Indexed Annuities Guarantee:
- A lifetime minimum interest rate
- You cannot lose your principal (the money that you invest) or have earned
- That you will not pay taxes on any gain, until you make a withdrawal, usually after 59 ½
- A choice of income options that you cannot outlive
- The ability to assign a beneficiary – possibly avoiding probate costs
- Liquidity or Transfer options, at least 10% each year with no surrender charge
- Potential for a 5-25% Bonus accredited to your account value or income for life account.
Mutual Funds (Variable) vs. Indexed Annuity
Mutual funds were never designed to be retirement and savings account. Since the pre-Depression, the Stock Market crash of the 1930's and today, Mutual Funds sole purpose is for investment. Since the late 1990's, the stock market volatility has been extreme and economists expect volatility to continue.
Most people would prefer safety versus non-guarantee growth potential with possible principal protection./p>
Hypothetical Lookback Comparison (1999-2010)
This is what a $100,000 investment in 1999 be 12 years later if it was invested in the S&P 500 index, a respected industry standard. What would the next 12 years look like?
Let's compare the same investment in a Fixed Indexed Annuity over the same period. If you notice, in the years 2000-2002 and 2008, the FIA did not go down but locked in.
