Understanding the difference between Fixed Indexed and Variable Annuities

Risk Management: Everything you need to know about Fixed Indexed Annuities.  I’m Steve Shyman, at Wilsave, we are Specialists in Safer Money Strategies. Different retirement products and savings strategies seem to be everywhere we look these days, but there’s one retirement product that is making headlines. Let’s Understand annuities and the difference between a variable and fixed indexed annuity.

In 2015, Fixed Index Annuities (FIAs) saw record-breaking sales, an increase of 13% since 2014.  Why are FIAs gaining so much popularity? It’s really about the safety. Here, we’ve outlined nearly everything you need to know about FIAs and why so many Americans are taking notice.

There are two categories of annuities: Fixed and Variable. Variable annuities require the consumer to assume the risk while With Fixed Index Annuities you can never lose your principal due to market loss. More and more people are choosing safety and guarantees over risk.

The market is more volatile than ever. You may need protection from these wild swings. One look at this graph of the S&P from 1980 to now Illustrates the difference between the past 16 Years and the previous 20 years. Notice the large swings of the last 18 years. These swings can be dangerous to those near or in retirement.

Life is unpredictable. By incorporating a Fixed Indexed Annuity into your portfolio, you can among other things: Protect part of your portfolio from volatility and market risk Generate guaranteed life time income that can adjust upward for inflation.

How much can you contribute? As much as you want to. Money in and FIA grows tax deferred like in a retirement account. While an IRA or 401K might dictate how much you’re able to contribute, Fixed Indexed annuities do not have annual contribution caps. Save as much as you can!

Market volatility can lose you money and leave you feeling uncertain. Fixed Indexed Annuities can help protect your principal from unexpected market swings. FIAs are all about the safety coupled with a reasonable rate of return.

The landscape has changed over the last 40 years. To keep up and do well, you must be able to adapt your investment style to what is going on today. To see how a “Fixed Indexed Annuity” would work for you, Please contact us at 312-953-2097, send me an email at steve@wilsave.com, or fill out the meeting request form at www.wilsave.com There is no charge for our no obligation consultation.

Leave a Reply

Your email address will not be published. Required fields are marked *