What Financial Advisors Wish Every Retiree Knew About Fixed Indexed Annuities
If you're approaching retirement, you've likely heard conflicting advice about fixed indexed annuities. Some advisors dismiss them entirely, while others push them for every situation.
Get clarity with our 5-minute assessment that shows which FIAs (if any) match your specific situation - no sales pressure, just education.
Eddy Gifford
Investment Advisor Representative
Tactive Advisors
"I created this guide to cut through the confusion and provide straight answers about fixed indexed annuities - no sales pressure, just education."
- Eddy Gifford
The truth about fixed indexed annuities lies somewhere between complete dismissal and overselling. Many of my clients come to me having received contradictory information, leaving them more uncertain than when they started.
The purpose of this article is to provide clarity on what fixed indexed annuities actually are, who they may benefit, and how to determine if they might be suitable for your specific situation.
The Retirement Income Challenges You're Facing
Most retirees face the same dilemma: How do you generate reliable income for 25-30+ years without running out of money, especially when markets can be volatile and traditional "safe" investments barely keep up with inflation?
Market Volatility Risk
Your retirement savings remain exposed to market downturns throughout retirement. A crash early in retirement can permanently impact your income.
Longevity Risk
People are living longer - retirement savings need to last 25-30+ years. The traditional 4% rule may not be enough.
Inflation Impact
Healthcare costs and living expenses tend to increase faster than general inflation, eroding purchasing power over time.
Low Interest Rates
Traditional "safe" investments like CDs and bonds struggle to provide meaningful returns above inflation.
Top Retirement Concerns
- Market crashes78%
- Running out of money71%
- Healthcare costs69%
- Inflation impact65%
*2023 Retirement Confidence Survey
Fixed Indexed Annuities: One Potential Solution
FIAs might address these challenges by providing principal protection with growth potential - but only if they match your specific situation and goals.
The key is finding the RIGHT FIA for YOUR circumstances among 300+ available options.
Discover Which Fixed Indexed Annuities Match Your Situation
Rather than wondering which of the 300+ available FIAs might be suitable for your specific circumstances, use the AnnuityAI assessment to get personalized recommendations based on your situation.
The Process:
This isn't about selling you any particular product - it's about ensuring that IF you decide an FIA is appropriate, you're considering the ones that best match your specific needs.
Understanding Fixed Indexed Annuities: The Facts
Here's what fixed indexed annuities actually are and aren't, based on the actual product features and contract terms.
What They Are
A fixed indexed annuity is an insurance contract that provides:
- Principal ProtectionYour money is protected from market losses
- Growth PotentialInterest linked to market index performance (with caps)
- Income OptionsOptional riders for lifetime income payments
What They're Not
- Direct Market InvestmentsNot stocks, bonds, or mutual funds
- Guaranteed ReturnsNo specific return percentages are promised
- Universal SolutionsNot suitable for every situation or person
- Complete StrategiesShould be part of a diversified plan
Who Might Consider Fixed Indexed Annuities?
May Be Suitable For:
- •Retirees who want a portion of savings protected from market risk
- •Those concerned about longevity and wanting income options
- •People comfortable with liquidity limitations during surrender periods
- •Those with other retirement income sources seeking diversification
- •Individuals who understand the product features and trade-offs
May Not Be Suitable For:
- •Those needing immediate access to all retirement funds
- •People seeking maximum growth potential above all else
- •Those who don't understand the product features and limitations
- •Individuals being pressured into a quick decision
- •Those with very limited retirement savings who need maximum liquidity
Get Your Personalized FIA Recommendations
If you're curious about which specific fixed indexed annuities might be most suitable for your retirement planning situation, the AnnuityAI assessment can provide clarity.
Important Disclaimers
This content is for educational purposes only and should not be considered personalized financial advice. Fixed indexed annuities are insurance products with features, benefits, and costs that vary significantly between products and insurance companies. They may not be suitable for all investors. Please consult with a qualified financial professional before making any financial decisions.
Any guarantees mentioned are backed by the financial strength and claims-paying ability of the issuing insurance company. Past performance does not guarantee future results. This content is not affiliated with any government agency.
Contact: contact@annuityai.io
© 2024 AnnuityAI - All Rights Reserved