Did you know that 83% of retirement plans are subject to loss in the market? Only two out of a hundred people, age 65 or older will retire financially independent. While Variable Annuities are subject to both market loss and have a lot of ongoing fees to manage, Fixed Indexed Annuities do not. Many financial companies make blanket negative statements about the risk and cost of annuities with out making this important distinction. Yet most of these companies want to manage your funds by putting them at risk in the market. Some plan to invest or buy as the market goes up and sell when it is clearly headed down, acting as a Financial Planner or Consultant. There are hundreds of thousands of Financial Planners. There are very few Companies that that act as a Fiduciary or in your best interest by offering Fixed Indexed Products.
In General if you use one of the many indexes as a measuring stick of market gain, but your money is not in the market, then that describes an indexed Strategy. The biggest general feature of a Fixed indexed Annuity is that when the Stock market goes down Zero losses are your hero. Some Fixed Indexed Annuities offer a guarnateed growth in compound interest so even if the market goes down you make more than no loss. After all no loss for a year might mean your principal lost value due to inflation.
A crediting strategy describes the possible ways you can tie your money to the gains of the market. A conservative approach is a guaranteed interest credit regardless of how the market performs. A crediting strategy can last for one or more years. For example you start your Annuity on June 1st and and the interest is credited the following year after June 1st. Or you could chose to have the interest credited every two years. So, two years after your start date or anniversary your interest is credited. Each company that I work with has several crediting options and types of indexes.
To really understand what is best for your situation we will set up an appointment to meet. The goals of the meeting will be to better understand your financial goals. Analyzing your information and then offer you options and solutions that suit your financial needs. To get the best bang for your buck you don't want to just buy something that someone has for sale, like a product that you might quickly purchase online, that is delivered the next day to your doorstep. When your future is at stake it is worth it to get the best advise with the best options.