The Power of a Fixed Index Annuity
Every retirement is different, each with its own financial plan and unique needs, but many of today’s retirement goals include achieving asset protection, growth opportunities, and a reliable income source. Fixed index annuities are a long-term retirement product that have helped many Americans plan for income in retirement and balance their retirement portfolios with benefits like principal protection, tax-deferred growth and guaranteed income that cannot be outlived.
What is a fixed index annuity?
A fixed index annuity is a contract between you and American Equity that offers interest growth opportunities determined by a formula that is based on the performance of an external index.
How do fixed index annuities work?
A fixed index annuity is purchased from an insurance agent or financial professional who is licensed to sell annuities. The annuity is issued from an insurance provider who guarantees the contract, which can earn interest based, in part, on equity index increases.
The fixed index annuity is considered an insurance product and is not directly tied to or invested in the stock market or share ownership. This function prevents the annuity contract from losing money due to index volatility and the interest credited will never be less than zero.
American Equity uses four common indexes:
S&P 500® Index contains stocks from 500 various industry leaders and is widely regarded as a leading benchmark for U.S. stock market performance.
S&P 500® Dividend Aristocrats® Daily Risk Control 5% Index is a volatility control index that offers increased stability and control based on companies with 25 consecutive years of positive dividend returns. The Index is dynamically adjusted across two components: equity and cash. This Index is well diversified across all market sectors.
Dow Jones Industrial Average (DJIA®) is the oldest continuing stock market index in the world. Many of the stocks represented in the DJIA are leaders in their industries.
10-Year U.S. Treasury Bond is a government-issued debt designed to mirror general market interest rates.
American Equity offers fixed index annuity products that provide different benefits and terms. Click the brochures below to download product details.
Looking for retirement tools? Try our annuity calculators.