Top 5 Fixed Index Annuity Myths Debunked

Top 5 Fixed Index Annuity Myths Debunked

With all the news about disappearing pensions, the future of Social Security, health care and increasing inflation, and not to mention the recent ups and downs of the financial markets – it’s enough to make anyone uneasy.

All of that has placed a much greater responsibility on personal savings as the main source of our retirement income. This creates even MORE NEED for financial solutions that can help provide a new level of protection for your retirement savings.

But consumer research indicated that a large number of consumers claim that they dislike the word “annuities.” In fact, 50% of the baby boomers surveyed in a recent study (Allianz, Reclaiming the Future Study) said they formed their opinions about annuities more than 10 years ago!

Here’s what they think about Fixed Index Annuities (FIAs):

  • Fixed Index Annuities are too complex
  • Fixed Index Annuities have high fees
  • Fixed Index Annuities tie up your money for years
  • Fixed Index Annuity values must be annuitized
  • If you die, the insurance company keeps your money


But things change and evolve.

Here’s a look at today’s realities and why those previous thoughts about annuities are NO LONGER valid…

  • Fixed Index Annuities are easy to understand. Understanding FIAs involves learning some basic terms because interest earnings are calculated in various ways.
  • Like many financial products, FIAs carry some fees. The insurance company uses these fees to help support its guarantees and provide valuable benefits including:
    • Protection from loss of principal if the market index declines
    • Lifetime income option
    • A guaranteed minimum value, credited with interest at a guaranteed rate (if chosen)
  • You’re money isn’t tied up for years and years. In fact, many of today’s FIAs have surrender periods of less than 10 years and some as short as 7 years. FIAs also offer multiple ways to access funds without penalties.
  • Most FIAs offer multiple ways to access accumulated values without taking annuitization.
  • The insurance company doesn’t keep your money as FIAs let you choose a beneficiary.

A Fixed Index Annuity is just one piece of your retirement portfolio that can help provide a level of protection for you even if some of your other retirement pieces go away.

If you have an old 401k, an IRA, or a Roth IRA that has NOT performed to your expectations or you just want to look at other options, click the “Get Started” button to schedule a time to speak with your adviser to learn how you can add further stability and reliability to your financial future.

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Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC registered investment adviser.  Registration as an investment adviser does not imply a certain level of skill or training. Intelliplan Financial and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice.

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