A Fixed Indexed Annuity (FIA) allows your money to earn
interest credits based on an external market index while
protecting it from direct market losses.
With an FIA, your principal is shielded from stock market declines, and your interest may grow based on an external index.
Retirement savings should be safe and growing, but the reality is:
A downturn could reduce your available savings.
CDs and savings accounts may not keep up with inflation.
Traditional investments may trigger yearly tax liabilities.
A Balance of Growth Potential & Principal Protection
A Fixed Indexed Annuity (FIA) is an annuity contract issued by an insurance
company that:
through interest credits tied to a market index.
(your principal will not decrease due to negative index performance).
meaning taxes on earnings are delayed until withdrawal.
(available for an additional cost).
Select an external market index
(e.g., S&P 500) to determine
potential interest credits.
If the index performs well, you may
receive interest credits (subject to
caps, participation rates, or
spreads).
If the index declines, you won't lose money due to market fluctuations.
Withdraw funds as needed
(subject to contract terms) or
convert to a guaranteed lifetime
income stream.
If you leave your money in a high-risk or low-interest account, you could:
(for risk-based investments).
The principal is protected from market losses, but the value of your annuity may decrease if you take early withdrawals or choose optional riders with fees.
Earnings grow tax-deferred, and withdrawals are taxed as ordinary income. If taken before age 59½, withdrawals may be subject to a 10% IRS penalty.
FIAs generally do not have upfront sales charges, but they may include:
Interest credits are based on an external index’s performance, subject to:
Find out how a Fixed Indexed Annuity can enhance your retirement strategy.
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