Financial Coach in Los Angeles
Fixed Index Annuities
Fixed Index Annuities allow you to invest in the stock market but never lose your initial investment.
What is a Fixed Index Annuity?
A Fixed Index Annuity (FIA) or Hybrid Annuity is a unique retirement investment that allows you to participate in stock market gains but takes away the risk of losing money due to the stock market declines. According to information on annuities by the National Association of Insurance Commissioners (NAIC), the FIA is a popular retirement income strategy among Americans.
In exchange for taking away the 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!
Located in Los Angeles, certified financial planner Samuel Rad has specific expertise in Index Annuity strategies. His wealth management firm in Los Angeles does extensive research in this field and can provide you with free written information on Fixed Index Annuities.