Fixed-Indexed Annuities

Fixed-indexed annuities provide the potential to earn indexed interest, without any market risk. Annuities can address a wide variety of needs.

A fixed-indexed annuity is a type of annuity contract that pays an interest rate based on the performance of a specified market index, such as the S&P 500. It differs from standard fixed annuities, which pay a fixed rate of interest, and variable annuities, which base their interest rate on a portfolio of securities chosen by the annuity owner.[1]
 
These two financial education videos explain the purpose and function of the Fixed-Indexed Annuity:


 

Used with permission from Allianz Life Insurance Company.


Used with permission from Great American Insurance Group.

 


Stock Market Emotional Rollercoaster

 


 

[1] Description based on Investopedia's "Indexed Annuity" article.

Fixed-indexed annuities (FIAs) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims paying ability of the issuing insurance company. Barankovich Financial Services, Great American Life Insurance Company, Allianz Life Insurance Company, and Annuity Investors Life Insurance Company are separate entities and not affiliated with LPL Financial.

The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Standard & Poor’s 500 Index is an unmanaged index which cannot be invested into directly.
 
The information being provided is strictly as a courtesy. These individuals or outside entities are not affiliated with, nor endorsed by LPL Financial. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.