Fixed Indexed Annuities On Fire

Fixed Indexed Annuities On Fire

September 24, 2018 – If you still believe that guy on the radio castigating you to hate annuities, it might be worth seeing what the top industry research association’s statistics reveal about 2018 YTD fixed indexed annuities (FIAs).

Hint: They’re HOT!

Through the first half of 2018, $32.1 billion worth of fixed indexed annuity purchases were made according to LIMRA Secure Retirement Institute. That’s up 14 percent from 2017 and its $17.6 for the quarter is an alltime high.

Compared to the $30 trillion market capitalization of the U.S. stock market, this is a drop in the bucket. But for an idea hatched just 23 years ago, fixed indexed annuities are making some important strides as people seek a reasonable blend of security and return for their money.

Besides, unlike the stock market, FIAs never lose money.

Fixed indexed annuities offer investors a simple proposition: In exchange for money today, you receive two promises:

You will never lose money; and,

You will receive guaranteed future income FOR LIFE, the value of which will be determined by the investment experience of the selected index and the timing of your withdrawal.

Admittedly, the nuances of the various life market offerings and index choices can be daunting. But millions of individuals have benefited from the peace of mind that comes with guaranteed lifetime income without fear of market downturns.

For those eligible to structure their personal physical injury settlements, including attorneys who structure their fees, Pacific Life has an Indexed-Linked Annuity Payment Adjustment Rider which can provide enhanced payouts over time depending on the direction of the S&P 500 – a nice option for those concerned about keeping up with inflation.

All in all, FIAs are worth considering for funds you simply cannot afford to lose. Because principal is protected, a down market doesn’t adversely affect your investment. When the market increases, so does your balance subject to any caps and limits imposed by the policy.

As more and more people take the time to educate themselves about the proven benefits of annuities, we expect to see this upward trend in annuity popularity increase.

Graph Up image courtesy of afe207 at FreeDigitalPhotos.net

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