A Fixed Index Annuity (FIA) or Hybrid Annuity is unique retirement investment that allows you to participate in stock market gains but takes away risk of losing money due to stock market declines.
In exchange for taking away risk of loss to the investor, FIA companies will share in your profits if the stock market returns are more than a certain amount in any given year. An example would be, an account that has a 20% ceiling or “cap”, if the stock market has a 25% return in one year, you would receive 20% and the FIA company would keep 5% as their profit.
Fixed Index Annuities became very well respected after the Tech Crash and the Real Estate Crash since they are designed to protect the investor against any loss. Investors who used this strategy did not lose any money. Annuities can also be used in order to guarantee an income stream for life, which is very powerful!
There are thousands of different annuities available each with different features and benefits! Just like mutual funds or other investments, you must work with an advisor that has the access and special expertise of these annuities in order to get maximum results. Many banks and brokerage firms do not offer this investment style because it does not provide them with a lot of fees and commissions.
Located in Los Angeles, Samuel Rad has specific expertise in Index Annuity strategies. His firm does extensive research in this field and can provide you with free written information on Fixed Index Annuities, Variable Annuities and others.