Fixed Indexed Annuities

A Fixed Indexed Annuity (FIA) is a retirement savings vehicle designed to provide growth potential, principal protection, and guaranteed income—all without direct exposure to market losses. It’s an ideal solution for business owners and anyone who wants steady, dependable retirement income with less risk while also considering estate planning strategies for their future.

Here are the key benefits of using a Fixed Indexed Annuity:

1. Principal Protection

Your money is never directly invested in the stock market. Instead, it earns interest based on the performance of a market index (like the S&P 500). The value of your annuity will never decline due to market losses—giving you peace of mind during economic downturns and enhancing your financial security.

2. Growth Potential Linked to Market Indexes

FIAs offer upside potential through interest credits tied to one or more market indexes:

When the market performs well, you earn a portion of the gains.

When the market goes down, you earn 0% (but never lose money).

This creates a balanced approach: growth when the market is up, protection when it’s down, supporting tax-advantaged wealth accumulation strategies.

3. Tax-Deferred Growth

Like traditional retirement accounts, your money grows tax-deferred until you withdraw it. This allows for:

Faster accumulation due to compound growth.

Lower taxable income now, with potential tax planning flexibility later.

4. Guaranteed Lifetime Income

One of the strongest features of FIAs is the ability to turn your savings into a guaranteed stream of income for life, with options including:

Single life income (just you).

Joint life income (you and a spouse).

Income with a death benefit to ensure your loved ones are protected, maximizing life insurance benefits for your family.

This eliminates the risk of outliving your money, also known as longevity risk.

5. Optional Riders for More Flexibility

Many FIAs come with customizable riders for a small fee, including:

Guaranteed income riders (even if the account value drops to zero).

Long-term care or chronic illness benefits.

Enhanced death benefits for your heirs, supporting effective estate planning.

These riders provide extra layers of protection and flexibility depending on your retirement goals.

6. No Rollover Limits

You can roll over large sums from retirement accounts (like a 401(k), 403(b), or IRA) into an FIA without annual contribution limits—making it great for:

Pre-retirees moving funds from volatile accounts.

Retirees seeking income, stability, and tax deferral.

7. Avoid Market Volatility

For retirees or conservative investors, avoiding market losses is critical. FIAs remove the emotional stress of watching your account drop during market downturns, enhancing your financial security.

Summary of FIA Benefits

✅ Principal Protection: Never lose money due to market downturns.

✅ Growth Potential: Earn based on market indexes with no direct investment.

✅ Tax-Deferred: Delays taxes on gains until withdrawal.

✅ Lifetime Income: Guaranteed income stream you can’t outlive.

✅ Customizable Riders: Add-ons for long-term care, income, or death benefit.

✅ Estate Planning: Can pass unused funds to beneficiaries.

A Fixed Indexed Annuity is a smart option for anyone nearing or in retirement who wants:

Predictable income.

Protection from market volatility.

Tax advantages.

A safe, flexible way to grow and preserve wealth.