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?
Fixed index annuities are one of the only retirement vehicles specifically designed to provide a powerful combination of benefits that protects principal, allows for index-linked interest credit increases, provides tax-deferred growth and guarantees income over a chosen period of time.
How do Fixed Index Annuities Work?
A fixed index annuity is a contract between you and an insurance provider, such as American Equity, which guarantees principal protection and a future income source. The contract is purchased using a lump sum or a series of payments, also known as premiums.
An annuity is purchased from an insurance agent or financial professional who is licensed to sell annuities and can help you achieve your long-term retirement goals.
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 with the market going down and performing poorly. The interest credited will never be less than zero.
What is a Lifetime Income Benefit Rider and How Does it Work?
The optional Lifetime Income Benefit Rider (LIBR) with a fixed index annuity from American Equity can help secure a guaranteed lifelong income source. The amount of income to be received is measured by the income account value, which is credited over time and grows until the earlier of income payments beginning or the end of the accumulation period.
American Equity Uses Four Common Indices:
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.
The 10-Year U.S. Treasury Bond is a government-issued debt designed to mirror general market interest rates.
American Equity's Fixed Index Annuities
American Equity offers fixed index annuity products that provide different benefits and terms. Click the brochures below to download product details.
The AssetShield 5 is a fixed index annuity designed to protect assets and allow growth opportunities with a five-year surrender charge schedule.
The AssetShield 7 fixed index annuity is designed to help people reach their retirement goals with opportunities for tax-deferred growth, asset accumulation and a seven-year surrender charge schedule.
The AssetShield 10 fixed index annuity can help with protection of hard-earned dollars while also allowing for growth and accumulations. It comes with a 10-year surrender charge schedule.
The IncomeShield 7 fixed index annuity with lifetime income benefit rider can offer many benefits, including principle protection, tax-deferred growth and income that can’t be outlived. It comes with a seven-year surrender charge schedule.
The IncomeShield 10 fixed index annuity with optional lifetime income benefit rider can help provide principal protection, tax-deferred growth and guaranteed lifetime income. It comes with a 10-year surrender charge schedule.
The Bonus Gold fixed index annuity with optional lifetime income benefit rider offers a 10 percent premium bonus on all premium received in the first contract year. It has a 16-year surrender charge schedule.
The Retirement Gold fixed index annuity with optional lifetime income benefit rider offers an 8 percent premium bonus on all premium received in the first contract year. The premium bonus vests over a 14-year period. The fixed index annuity also has a 10-year surrender charge schedule.
The Choice 6 fixed index annuity offers the benefits of principal protection, guaranteed income, tax-deferred growth and liquidity options. It comes with a six-year surrender charge schedule.
The Choice 8 fixed index annuity offers interest growth opportunities and a reliable income source to help people reach their retirement goals. It comes with an eight-year surrender charge schedule.
The Choice 10 fixed index annuity is designed with principal protection from index volatility and offers guaranteed lifetime income. It comes with a 10-year surrender charge schedule.
Looking for retirement tools? Try our annuity calculators.