Fixed indexed annuities can provide a guaranteed income stream for life. The client has the ability to choose from several different annuity payment options. With non-qualified plans, a portion of each annuity payment represents a return of premium that is not taxed, which reduces the income tax on any annuity payments.

While the indexed annuity concept offers many features of a traditional fixed annuity, it has a rather unique feature that allows a potential of stock market-linked interest credits without the potential of any market-type loss. In contrast to a securities-type product such as a variable annuity (typically little more than a mutual fund) or an actual mutual fund where the investor bears the market risk, the fixed indexed annuity concept protects the contract owner from any risk of loss of principal due to market downturns.

Earnings on a fixed indexed annuity are based on stock market-like performance from certain indices. But what exactly is indexing? Indexing is simply an investment strategy that follows the performance of select securities, such as the Standard & Poor’s 500® Index. The S&P 500® is a collection of 500 select industry leaders and thus a benchmark for U.S. Stock Market performance. A fixed index annuity is linked to the performance of this type of market index, without the risk of directly participating in stock or equity investments. With indexing, an annuity owner can participate in a diversified passive investment strategy.

Fixed indexed annuities have the potential for market-linked interest without exposure to the market risk. Contract owners enjoy the guarantees and safety of their principal even while being linked to market growth. However, they should not expect fixed index annuities to mirror the exact performance of any stock market index. Since a fixed indexed annuity uses a passive investment strategy, it will not mirror the exact return of the stock market index. The fixed indexed annuity is a powerful financial tool designed to meet a client’s long-term retirement needs.

With 10,000 baby boomers now turning 65 each day in this country, and with current market conditions eroding the savings a confidence of many in this large consumer group, annuities provide the answer to many of their retirement needs.  This market has just begun to show explosive growth. Our leads provide you the opportunity to enter into the homes of so many people who are looking for exactly what an annuity provides and also opens the door to many additional sales that can put additional commission dollars into your pocket each year.