Understanding Index Annuity Funds: Your Path to Secure Retirement

Index annuity funds can provide a predictable income stream in retirement, helping to alleviate concerns about outliving your savings.

One of the key benefits of index annuity funds is their ability to grow tax-deferred, meaning you won't have to pay taxes on the gains until you withdraw them in retirement.

Index annuity funds can offer a guaranteed minimum crediting rate, which ensures a minimum return on your investment, even if the underlying index performs poorly.

This guaranteed minimum crediting rate can be a major advantage for investors who are risk-averse or want to minimize their exposure to market volatility.

An annuity is a type of insurance contract that provides a guaranteed income stream for a set period of time or for the rest of your life.

There are different types of annuities, including fixed, variable, and indexed annuities.

An indexed annuity, in particular, pays an interest rate based on the performance of a market index, such as the S&P 500.

An annuity is a type of insurance contract that provides a guaranteed income stream for a set period of time or for life.

There are different types of annuities, such as indexed annuities, fixed annuities, and variable annuities.

An indexed annuity pays an interest rate based on the performance of a market index, like the S&P 500.

Indexed annuities are also known as equity-indexed or fixed-indexed annuities.

They differ from 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.

An annuity can be a great way to ensure a steady income stream in retirement, but it's essential to understand the different types and how they work before making a decision.

An equity-indexed annuity can help you double your interest earned for lifetime income. This type of annuity guarantees a minimum return plus more returns on top of that, based on a variable rate linked to a certain index, such as the S&P 500.

A Power Series Index Annuity with Lifetime Income Plus Multiplier Flex can increase income with income credit rates. These rates guarantee lifetime withdrawals of up to 7.35% per year, available for single owners aged 75 or older.

To maximize lifetime income, consider a registered index-linked annuity (RILA). These annuities offer guaranteed income through annuitization, which is the process of converting an annuity investment into a series of periodic income payments.

Here's how a RILA can help you maximize lifetime income:

Keep in mind that some RILAs may be set up through an income benefit to offer a higher level of guaranteed lifetime income. However, this may come with lower crediting rates and a fee for the income rider.

FIAs are powered by the crediting strategy you choose. For most FIAs, a crediting strategy is made up of three parts.

Your crediting strategy will determine how your FIA performs. You can choose from a variety of options, but the key is to find one that aligns with your financial goals.

In the case of equity-indexed annuities, part of the interest rate earned is a guaranteed minimum, typically 1% to 3% paid on 90% of premiums paid. The other part is linked to the specified equities index.

Here's a breakdown of the key components of a crediting strategy:

These components work together to determine how your FIA performs. By understanding how they interact, you can make informed decisions about your investment.

An equity-indexed annuity is a type of long-term financial product offered by an insurance company.

It guarantees a minimum return plus more returns on top of that, based on a variable rate that is linked to a certain index, such as the S&P 500.

One example of an equity-indexed annuity is Ascent Pro, which is built with the potential to grow savings and create a guaranteed income stream to last a lifetime.

The index is a crucial part of how your FIA grows. It's the market index your growth is based on, such as the S&P 500.

You don't invest directly in the index, but you do receive index credits based partly on how the index performs. This means your returns are tied to the performance of the index.

In years when the stock index declines, the insurance company credits the account with a minimum rate of return, typically around 2%. Some may be as low as 0% or as high as 3%.

When choosing a term for your FIA, you'll generally have a range of options to consider. You can select a term from one to 7 years, as this is a common timeframe for FIAs.

The length of the term will impact how long you have to make the most of your investment. This can be a good thing if you know you won't need access to your money for a while.

One to 7 years is a relatively short to medium term, which can be a good fit for people who want to avoid locking their money away for too long.

Athene FIAs offer optional riders that provide benefits like lifetime income, increased liquidity or an enhanced death benefit option. Riders vary by product and are often at an additional charge. Learn more about Athene FIAs.

If you're looking for a way to leave a legacy for your loved ones, Athene FIAs may be a good option. You can choose from a variety of riders to suit your needs.

Some of the benefits of Athene FIAs include lifetime income, increased liquidity, and an enhanced death benefit option. These benefits can provide peace of mind and financial security for you and your loved ones.

Here are some of the key features of Athene FIAs:

As with any FIA, it's essential to consider your individual needs and goals before choosing an Athene FIA. By understanding your options and selecting the right product, you can create a financial plan that works for you.

A buffer and a floor are two different concepts in registered index-linked annuities.

A buffer limits the amount of any negative performance, but leaves the contract owner to assume any remaining negative performance that exceeds the buffer. For example, a 20% buffer would protect you from losses up to 20%.

A floor, on the other hand, is a maximum percentage of loss that the contract owner is willing to take. If the annuity has a 20% floor and the market is down 25%, your account value would decrease by 20%.

A buffer may be more beneficial in protecting you from small losses, but it provides less protection against large losses. Conversely, a floor provides a maximum level of loss, but it doesn't protect you from smaller losses during the term.

In the event of a large market downturn, a floor can be more beneficial because it caps your losses at a certain percentage.

During times of market volatility, a registered index-linked annuity (RILA) can provide confidence to remain invested for the full term. This is because the account value has a level of protection from market downturns.

A RILA allows you to participate in market growth opportunities based on your selected crediting strategy.

67% of investors are looking for investment choices that balance growth opportunities with a level of protection. A RILA can help you achieve this balance and reach your long-term retirement goals.

RILA owners can have more confidence to remain invested for the full term knowing that their account value has a level of protection from market downturns.

A financial professional can help you better understand RILAs and their benefits, which can help you feel more confident in your investment.