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 income payments are drawn from an income account value (IAV) or benefits account value (BAV), which is credited over time using different crediting strategies depending on the annuity. The IAV or BAV is used to calculate income or benefits payments, and is only available through lifetime income or death benefit payments. It is not available as a lump sum.
American Equity Featured Indices:
BofA Destinations Index™ (Ticker: BOFADST5): Developed in collaboration with Bank of America and exclusive to American Equity, the volatility-controlled index tracks domestic equities, treasuries and the Gold Index.
Go to the index site
Credit Suisse Tech Edge Index (Ticker: CSEATEDG): The excess return index combines four U.S tech and biotech ETFs and two fixed income components. It utilizes a cutting-edge volatility control mechanism, powered by Salt Financial, to identify to changing market conditions using a combination of intraday and end-of-day data.
Go to the index site
SG Global Sentiment Index (Ticker: SGIXSENT Index): This multi-asset class index assesses market sentiments to determine whether a market is in a growth, intermediate or shrinking phase. Each phase is associated with an allocation across a global and diverse asset base, including equities, bonds and commodities in domestic, European and Asian markets.
Go to the index site
S&P 500® Index (Ticker: SPX): Consists of 500 leading U.S. stocks and is a common benchmark of the U.S. stock market. The S&P® 500 Index is widely regarded as the best single gauge of large-cap U.S. equities.
Go to the index site
S&P 500® Dividend Aristocrats® Daily Risk Control 5% Excess Return Index (Ticker: SPXD5UE): Volatility control index that consists of the S&P 500 members that have consistently increased dividends every year for at least 25-consecutive years.
Go to the index site
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.
FlexShield 10:
FlexShield 10 is a 10-year fixed index annuity designed to help unlock more opportunity for accumulation, while ensuring principal stays protected.
EstateShield 10:
EstateShield 10 is a 10-year fixed index annuity designed to help supplement lifelong income with a guaranteed income stream that has the potential for annual increases, plus enhanced death benefits allowing beneficiaries to choose how payments are received, leaving a legacy to loved ones.
AssetShield 5:
The AssetShield 5 is a fixed index annuity designed to protect assets and allow growth opportunities with a five-year surrender charge schedule.
AssetShield 7:
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.
AssetShield 10:
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.
IncomeShield 7:
The IncomeShield 7 fixed index annuity with lifetime income benefit rider can offer many benefits, including principal protection, tax-deferred growth and income that can’t be outlived. It comes with a seven-year surrender charge schedule.
IncomeShield 10:
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.
Bonus Gold:
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.
Retirement Gold:
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.
Looking for retirement tools? Try our annuity calculators.