Host : Colin MacDonald
Category : Basics of Annuities
Date : 14 November, 2019
Topic : Fixed Indexed Annuities
Length : 40 Mins
Tags : annuities, fixed indexed annuities
This is a replay of a webinar hosted by All Things Annuity President, Colin MacDonald. The topic for this webinar was "Fixed Indexed Annuities Explained." Colin covers the basic featues of indexed annuities, how and when they fit into a retirement plan, and what to aviod before buying an indexed annuity.
Fixed Indexed Annuities (also referred as FIAs) are a type of tax-deferred annuity whose credited interest is linked to an equity index; typically the S&P 500. An equity indexed annuity guarantees a minimum interest rate (typically between 1% and 3%), while also having the potential to participate in a portion of the market's upside growth.
The returns may be higher than fixed instruments such as CDs, money market accounts, and bonds but not as high as market returns. Every Equity Index Annuity is insured by the State Guarantee Fund, which is similar to the insurance provided by the FDIC. The guarantees in the contract are backed by the relative strength of the insurer.