You may have been trained to believe that bonds are the only strategy for the fixed portion of your retirement clients’ portfolios. But bonds can have real limitations in a low-interest-rate environment, and can add portfolio risk when/if interest rates ever rise.

We offer options to bonds so you can diversify your clients’ portfolios even further. One strategy we provide is the fixed indexed annuity (FIA), an insurance contract between your client and a life insurance company designed to help them accumulate assets for retirement and provide potential growth along with protection from market risk. Some of these indexes are registered with the New York Stock Exchange.

Fixed indexed annuities offer low financial risk and guarantees from insurance companies based on their claims-paying ability, conservative returns, and protection from market ups and downs. Your clients pay a single premium or multiple premiums (for deferred annuities) to an insurance company in exchange for regular income payments over a period of time, beginning immediately or at some point in the future.

Additional Reading:

Economist/Yale Emeritus Faculty Member Dr. Roger Ibbotson:
https://www.wealthmanagement.com/insurance/ibbotson-fixed-indexed-annuities-beat-out-bonds

Professor Dr. Wade Pfau:
https://retirementincomejournal.com/article/the-safety-first-retirement-plan-via-wade-pfau/ Economist/

Professor Robert Shiller:
https://markets.businessinsider.com/news/stocks/insurmark-announces-barclays-bank-and-yale-economist-robert-shiller-research-showing-fixed-indexed-annuity-with-cape-index-would-have-outperformed-bonds-1028505495