What is your investment comfort zone?

life insurance and annuity marketing

Think of it this way: Everyone has a comfort zone when it comes to weather. Some people like the hot temperature of the south; some like the cooler, wetter climates in the northwest; still others would rather have a seasonal variety, like you get in the north. It can be similar with your investment comfort zone. There is no single answer that’s right for everyone. It’s what you decide is most comfortable for you. To understand your investment comfort zone and the type of investor you are, you’ll need to consider where you are in your life, what goals you want to accomplish in retirement, and what level of risk you’re comfortable with in your portfolio.

Knowing your investment comfort zone matters.

Understanding the type of investor you are is particularly important for a number of reasons:

  • If you’re too complacent, you may be ignoring risk.
  • You need to recognize when risk is increasing or decreasing.
  • If you’re an uncomfortable investor, you may allow your emotions to take control of your decisions.
  • You want to minimize the possibility that you may need to make difficult decisions under pressure.

The three primary types of market investing

Investing in the market always involves a level of risk. That’s why it’s essential for you to know how much gain or loss is acceptable to you, and what level of risk you’re comfortable with.

Remember, there is nothing fundamentally better about being a risk-taker or risk-advisor. Sometimes the greatest risk is taking no risk at all. Understanding your risk tolerance as well as your overall objectives and goals can help determine the type of investment that is appropriate for you.

Generally people think of three main types of investments: stocks, bonds, and cash or cash equivalents. All of these types of investments have advantages and disadvantages, depending on how the market is reacting at a particular time period. Whichever investments you choose, you need to consider the opportunities for gains, losses, liquidity, tax advantages, and consequences.


Although stocks may give you the opportunity for bigger gains over time, they can also be the most volatile. To most investors, particularly those who invest in equities, volatility is something to be aware of. The stock market can change from year to year and can be volatile, as the chart below displays. Most of us recall the “Lost Decade” from 1999 to 2009, when investors saw the S&P 500® Index drop more than 40% at the height of the 2008 financial crisis.

When the markets are volatile, the typical reaction is to want to get out of the market altogether and move your money into safer alternatives. But if you had done that following the 2008 market crisis, you would not have captured the rebound in the market the following years.

When determining your Investment Comfort Zone, think about: What is your time horizon (the amount of time before you’ll need your money)? What is your plan if the markets go down? Ask yourself, how is your portfolio protected?


Bond funds have been solid investments in a retirement strategy for many years. As fixed income investments, bonds help provide diversification, stability, and tax benefits to almost any portfolio.

Generally speaking, people tend to avoid the risks they are aware of. That’s why, in recent history, people have sought to reduce their exposure to losses caused by volatility by switching from investing in the stock market, to investing in the bond market.

And while bonds are generally seen as a safer alternative, they are susceptible to a different kind of risk, due to their inverse relationship to interest rates. With interest rates currently still near historic lows, bonds can offer higher returns, making them more desirable to investors and driving bond prices higher.

But as the graph shows, we’ve had three decades of a general decline in the baseline for interest rates. Now interest rates can’t go much lower- and when they begin rising, the value of existing

bonds moves in the other direction. Your bonds would then be worth less in order to keep the returns they offer competitive with the higher interest rates of newly issued bonds.

So if you’re holding a disproportionate amount of your retirement assets in bonds, you may have more risk in your portfolio than you realize. While bonds should continue to be part of a well-balanced portfolio for most clients, you need to be aware of how a rising interest rate environment could affect your portfolio.

Cash and cash equivalents

We all know how important it is to have some money in a savings account or short-term investment such as a money market account. By keeping money liquid (i.e., as cash, or as an asset that can be quickly converted into cash), it will be available at the time you need it. But it is also important to discuss how much is enough, and when an amount of cash might negatively affect your accumulation goals.

As you can see, the value of a dollar is projected to erode due to the effects of inflation over time, so you need to consider this potential “cost” versus the convenience and relative safety of holding assets as cash.

So while cash can play a role as a part of your retirement plan, cash alone will likely not help you reach your financial goals. Given this, it might make sense to balance your portfolio by shifting some low-earning cash to investments with higher growth potential.

Emotional investing

A 2013 Psychology Today article discusses economic research and emotional investing. Specifically, that emotions play a significant role in how people make financial decisions. But one of the most common mistakes investors can make is to let emotions guide their investment decisions. That’s why it’s important to understand the impact that emotional investing can play in your investment decisions. Because investors tend to focus on short-term gains and losses, emotions can run high in both directions. When the market is up, we are all relaxed and confident in our investments. But when the market goes down, anxiety can set in and our first reaction is to pull out our money from the market and move it to a safer place.

When we act on this impulse, we are allowing our emotions to make our investment decisions. Remember, the ability to “time” the market- to predict which direction the market will move at a point in time and invest accordingly- is virtually impossible. (If it was more possible, we’d all be rich.)

The investment cycle as emotional cycle as shown on the graph below, people typically get most excited about investing when market prices are at their highest.

You could think of it as the “overconfident” stage, but it can also be the stage of greatest risk. Because this is the market’s high point, as it starts going down, investor confidence often follows, giving way to nervousness and worry.

People may tend to wait it out for a while, but as panic and discouragement set in, they may decide it’s time to get out of the market. By shifting their investments into cash, the thinking goes, they can avoid additional market downturns.

Unfortunately, by exiting when prices are lower (or even at their lowest), they’ll lock in their losses – meaning they’ve given up their chance to regain value when the market starts rising again.

Are your emotions driving your investment decisions?

After you have made your plan for retirement, and the market inevitably goes up and down, will you be willing to stay the course through the highs and lows? Or will you overreact to the market and make decisions based on emotion?

Rebuilding your assets after a big loss takes time. It’s simple mathematics: the more value you lose, the more you’ll need to gain back in percentage terms to fully rebuild from your losses.

Always keep in mind that the decisions you make may affect not just your portfolio’s total value, but can also impact your timeline for retiring. Make sure you have enough time to recover from any market correction to meet your goals.

Finding your personal Investment Comfort Zone

Understanding your Investment Comfort Zone begins by working with your financial professional and reassessing it on an annual basis.

The type of investor you are takes into account your financial goals, your time horizon, and your tolerance for risk. And just because you think you are one type of investor today doesn’t mean you can’t change over time as your needs, goals, or attitudes change.

When determining your Investment Comfort Zone, here are some points to consider:

  • What accumulation goal is necessary to meet your future retirement needs?
  • What financial changes could change your Investment Comfort Zone?
  • What mix of investments is suitable to achieve your retirement goals?
  • Have you taken on an unnecessary amount of risk to reach your goals?
  • Can you maintain financial discipline when you are faced with changing market conditions?



Allianz Life  https://www.allianzlife.com/

Bond Volatility

DFS Marketing Inc. Insurance Marketing Organization


Buried deep in section D, Page 13*, you would uncover an outstanding article that clearly reveals a universal truth about bonds. “Many investors looking for safety and higher returns might falsely assume bonds are riskless investments, not realizing that even a modest increase in interest rates would take a serious bite out of fixed income values.”

Who’s making these statements?

The 2nd largest bond fund manager – The Vanguard Group.
Vanguard realizes the folly of many investors who do not understand they can lose principal if interest rates head higher. Vanguard rightfully warns investors, “…the value of a long-term bond fund might fall 20% if rates went up just two percentage points.”


In spite of these warnings and the fact interest rates are near historic lows, investors continue to flood money into risk laden bond funds. It is important to know this financial principle: Rising interest rates reduce bond values. It is a hard cold fact.
Author Ken Little from “About Money” is well aware of this relationship between rising interest rates and loss of bond value. He clearly states, “The biggest economic threat to bonds is rising interest rates.”
(Source: http://stocks.about.com/od/bonds/a/11-30-2012-Investors-In-Stock-Market-Need-Bond-Protection-Strategy.htm)

Do you believe interest rates are heading higher in the future?

Let’s examine an easy to understand example…

Imagine a bond was issued for $10,000. It has a five year term with a 5% coupon or interest rate, paid every six months.
Then, let’s imagine the market interest rates rise from 5% to 6%. If you want to sell this bond, would anyone buy it from you when it is paying 1% below market rates (5% vs. 6%)? That buyer could go elsewhere and just buy a 6% bond.
To get your bond sold, you will need to sweeten the deal so the buyer gets a competitive rate for buying your bond.
The problem is, you cannot change the interest rate on your bond. That’s locked in at 5%. What you can do, however, is change the price you will accept for your bond.
Here’s how you do it! Reduce your price so the annual interest payments of $500 ($10,000 x 5%) must equal a 6% payment.
This is called selling at a discount. To get the buyer a market rate of interest (6.0%), you must sell your bond at a discount for just $8,333. Now, the $500 fixed interest payment equals a 6% yield for the buyer of your bond…






While interest rates only rose by 1% in this example, your bond value reduced by a surprising 16.67%.

As an alternative, you may consider the safe haven provided by traditional fixed rate annuities. In most fixed annuities, the insurer accepts the market risk allowing the annuity owner to enjoy true safety and tax-deferred growth. Or consider the opportunities created by a Fixed Indexed Annuity. These innovative products provide you the potential to exceed traditional fixed interest rates without exposing your principal or past interest credits to market risk.



*(Source: The Wall Street Journal, March 19, 2003, Section D, Page 13)
“PLEASE NOTE: This is just an example to illustrate the relationship between interest rates and bond prices. It does not represent an actual computation. To do this calculation correctly would require a more complicated process and the answer would be different. However, the seller would still have to discount the face value of the bond to compensate for the interest rate difference.”
(Source: http://stocks.about.com/od/bonds/a/11-30-2012-Investors-In-Stock-Market-Need-Bond-Protection-Strategy.htm)

Are you an emotional investor?

Annuity and life insurance marketing organization

Some people make emotional financial decisions based on the messages and advertisements presented to them from the investment community.

Does this describe you?

We’ve created a test so you can find out! Let’s go through this fun little exercise together. Below you will find a series of historical performance charts. Imagine these charts display a highly diversified stock portfolio from leading publicly traded companies.

Are you an emotional investor?

Some people make emotional financial decisions based on the messages and advertisements presented to them from the investment community. Look at each graph on the left below and circle the number that best represents your feelings
about the chart. Helpful Hint: Be emotionally honest with your reaction to each chart.

Did you notice the charts not only performed differently but they also looked different?

This was done intentionally to simulate advertisments designed to trigger your emotions. Even though you were being presented with facts, the feelings were present and possibly part of your decision making.

Making investment decisions based on past performance can be a painful experience. The investment community has consistently tried to deliver this message to Americans. You have probably read the following statement hundreds if not thousands of times, “Past Performance Not Necessarily Indicative of Future Performance.” For those who advise on investments or sell investments, this statement is a required warning to the clients they work with.


Now ask yourself the following question and… be completely honest with yourself.

“Do I believe that past performance IS a good indicator of future performance of my mutual fund?”


If you answered, “YES” to this question it turns out you are not alone. If you believe past performance IS a good indicator of your investment’s future performance than you are in the same club as countless Americans who have the same belief.
In fact, many investors are influenced by ads illustrating a high past performance within mutual funds. According to Forbes, “(Mutual) Fund firms pay to run these ads for the simple reason that they work. Investors flock to funds that have performed well in the past–especially to those that are advertised as such. In fact, studies show that past returns may be the primary factor investors consider when choosing among funds.” Emphasis added. (Source:http://www.forbes.com/2010/04/16/fund-performance-adspersonal-finance-sec.html)

While advertising and the average individual investor uses past performance information and data, the investment community continues to issue their standard warning.

“Past Performance Not Necessarily Indicative of Future Performance.”

Regulators like the Securities and Exchange Commission (SEC) continue to issue warnings like the one below about the advertising practices that influence people’s important financial decisions.
“This year’s top-performing mutual funds aren’t necessarily going to be next year’s best performers. It’s not uncommon for a fund to have better-than-average performance one year and mediocre or below-average performance the following
year. That’s why the SEC requires funds to tell investors that a fund’s past performance does not necessarily predict future results.” Emphasis added. (Source: http://www.sec.gov/answers/mperf.htm)


Does it sound like a conflict to you?
Does it sound like double talk?

On the one hand, mutual fund advertisements draw customers with stories of outstanding historical performance yet this very performance is likely not an indicator of future results according to the same investment community. Are mutual funds trying to deceive people or are they just promoting the value of their product?
If you were evaluating a mutual fund without looking at the past performance chart or graph, on what would you be basing your decision? If you did not look at a historical chart at all, would you send your money to that mutual fund?

Information is powerful and it can trump emotion.

Mutual funds advertisements often pick attractive periods to show just how well they can do when times are good. Rather than argue if that is an honest and balanced approach, let’s consider at how it might affect your judgment. Think back to the charts you reviewed earlier in this report. Did the charts going up make you feel better than the charts going down? That’s what advertising is all about; peaking your interest and emotions. Financial decisions, on the other hand, should be based upon information. So let’s examine some more information.
Think back to the four charts again. Here’s some more information about those charts. Each of those charts was actually tracking the very same thing! That’s right, regardless of how you felt about each chart, they all tracked the S&P 500 Index. The investment, in this case, never changed but the manner in which it was displayed to you did. Now we will zoom out and look at a longer period of time.



The chart above spans 173 months or 14 years, 4 months and a handful of days. The good news is that the index is up over all from where it began. What often surprises people is the actual return. Many people, seeing the advertising and
short-term charts find this fact surprising…

S&P 500 Index has only grown by an average compound annual return of 1.8% during this period that extends more than 14 years.

Exploring Other Options

Equipped with this knowledge, it is reasonable to consider other ways one might grow their money without exposure to volatility.

Certificates of Deposit. According to the Securities and Exchange Commission (SEC)

“When looking for a low-risk investment for their hard-earned cash, many Americans turn to certificates of deposit (CDs). In combination with recent market volatility, advertisements for CDs with attractive yields have generated considerable interest in CDs…”

“When you purchase a CD, you invest a fixed sum of money for fixed period of time – six months, one year, five years, or more – and, in exchange, the issuing bank pays you interest, typically at regular intervals. When you cash in or redeem your CD, you receive the money you originally invested plus any accrued interest. If you redeem your CD before it matures, you may have to pay an “early withdrawal” penalty or forfeit a portion of the interest you earned…”
(Source: http://www.sec.gov/investor/pubs/certific.htm)

Fixed Indexed Annuities.

These low risk savings vehicles are issued by insurance companies.

According to the National Association of Insurance Commissioners…

“Money in a fixed indexed annuity earns interest based on changes in an index. Some indexes are measures of how the overall financial markets perform (such as the S&P 500 Index or Dow Jones Industrial Average) during a set period of time
(called an index term).”
“The insurance company uses a formula to determine how a change in the index affects the amount of interest to add to your annuity at the end of each index term. Once interest is added to your annuity for an index term, those earnings are usually locked in and changes in the index in the next index term don’t affect them.” (Source: http://insuranceca.iowa.gov/life_annuities/files/AnnuitiesBuyersGuide.pdf)


This chart tracks the actual performance of one Fixed Indexed Annuity that was purchased in 1998 through 2013.

*This graph is based on actual credited rates for the period shown on the Index-5 product which is no longer available for sale. Past performance is not an indication of future results. Please call your American Equity Agent for new product information. Check out product disclosure for specific information.

During this period, this specific Fixed Indexed Annuity earned greater than 4.5% (In Green Above). You can also see in the chart above that the Fixed Indexed Annuity enables the owner to sit out negative movements while participating in a
portion of the positive movements in the index (In Yellow Above). You can also clearly see the value of the minimum guaranteed rate (In Blue Above) compared to the performance of the index and the Fixed Indexed Annuity contract value.


Get all the facts!

Before selecting any financial product, be sure to meet with a fully licensed and experienced representative so that you understand the benefits and costs associated with the transaction you are considering.


Our office stands ready to help you. Just give us a call!




Figure 1: This chart tracks the S&P 500 Index from March 20, 2000 through September 30, 2002 as the index moved from 1527.46 to 800.58.
Figure 2: This chart tracks the S&P 500 Index from September 30, 2002 through October 8, 2007 as the index moved from 800.58 to 1561.80.
Figure 3: This chart tracks the S&P 500 Index from October 8, 2007 through March 2, 2009 as the index moved from to 1561.80 to 683.38.
Figure 4: This chart tracks the S&P 500 Index from March 2, 2009 August 11, 2014 as the index moved from 683.38 to 1978.34.

Call us to get this newsletter now!


Are Insurance Companies Really Safe?

read our article about insurance companies

Recently, we have all witnessed a dramatic change in the attitudes people have about their money. Investors have begun seeking ways to properly eliminate risk and preserve long-term, guaranteed growth. When people seek safety and protection, they often consider utilizing the services and guarantees of America’s insurance industry. For many years, people have considered annuities to be a safe haven for their life savings. The following is a brief outline that reveals some of the reasons annuities and insurance companies are so safe.


The US insurance industry is truly one of the tightest regulatory environments in the world.
Each state has a Department of Insurance (DOI) regulating insurance activity in their respective state. For example, if you live in Oklahoma, your DOI is keeping an eye on the operation and solvency of each insurance company that does business in Oklahoma. It is important to keep in mind that the same holds true if that same insurance company is approved to do business in another state. In other words, your DOI is not the only one watching over the insurer. Every state the insurer does business in has another DOI looking over their shoulder as well. This creates a truly remarkable level of oversight to catch potential problems well before they can get out of hand. The following is a short list of the key areas under
constant supervision.

Capital & Surplus Requirements

Insurers use capital and surplus as a buffer to finance growth and pay for emergencies and other business commitments. Each state specifies a minimum dollar amount for required capital and surplus that each insurer must maintain.

Risk Based Capital Ratio (RBC)

This sophisticated formula allows regulators to evaluate whether the insurer maintains sufficient capital in relation to the relative risk within the insurers operations. Each year, the RBC levels for each company are reported to the National Association of Insurance Commissioners (NAIC) and the state where the insurance company is domiciled. These ratios are then compared to the standards set by the NAIC for monitoring. The NAIC prescribes action based on 6 categories within the levels of performance for the RBC Ratio.


Annual Statements are filed with every state where the insurance company is licensed to do business and a copy sent to the NAIC. This allows for a thorough annual review of overall solvency within the company.

Other Ratios and Formulas

The Insurance Regulatory Information System (IRIS) is a system that has been developed to monitor financial conditions and prevent insolvency within an insurer. There are a total of 12 financial tests performed within the IRIS. The Financial Analysis and Solvency Tracking (FAST) system was created for additional analysis of larger insurers. The FAST system is applied to review the insurance company’s financial status every three years. The FAST system reviews both current financial records along with a review of the company’s 5-year history.

Guaranty Associations

As an additional safety net, each state has established a life and health guaranty association, which operates under the supervision of the state insurance commissioner. Insurers are required to participate in a state’s guaranty association in order to do business in the state. The association is responsible for funding obligations to policyholders should an insurance company be unable to meet the financial obligation. The members of the association are assessed fees to pay for obligations to customers. Guaranty funds have specific limitations on the amount they cover. These amounts vary from state to state. State laws ordinarily prohibit an insurer from using the existence of the guaranty association for the purpose of the sale of insurance and annuities.

Other Insurance Companies

In order to keep a safe distance from financial challenges, insurance companies work together to create an additional level of safety for policyholders. Many insurers actively pursue reinsurance through other insurance carriers. This further spreads the risk against the potential for a catastrophic financial dilemma to have a substantial impact on any individual company.


Today, many insurance companies specialize in a particular line of business. While this may skew their risk into specific types of areas, it can also provide another level of security. For instance, an insurer that focuses almost exclusively in the annuity business is not exposed by large natural disasters or unforeseen health circumstances. A well-managed annuity company can provide tremendous levels of safety and confidence by properly managing the funds in their care through a conservative portfolio of government issued and investment grade bonds.


Insurance companies are built to last. In Europe for example, you can find insurers that are literally hundreds of years old. This tradition of conservative asset management and well tested formulas for performance put insurance companies in a class by themselves.


Insurance companies today are measured in terms of the billions of dollars that they have under their care. This financial clout allows companies to weather the storms of time and keep the promises they have made to their policyholders.

Ratings Services

Insurance companies are among the most closely monitored business entities in the United States. Most active insurers are scrutinized by ratings services such as Weiss, Standard & Poors, Fitch, and the premier insurance rating company, A.M. Best. Companies like A.M. Best do more than simply make sure the company is meeting the minimum standards for regulatory clearance. Most ratings services are measuring the amount that the insurance company actually EXCEEDS the minimum requirements.
This additional monitoring level cannot be overstated. Nobody thinks twice when a consumer asks, “What is that insurance company rated?” In fact, most agents don’t wait for the question to be asked. They often offer the current company ratings to the client because it is assumed that they expect to receive this type of information. Why? Because the insurance industry is safe and measurable to a high degree. Now think carefully; when was the last time you asked, “What is my bank rated?” or how about, “I wonder what the credit rating of my local stock broker is?”


The items discussed above are indicative of a truly safe environment for an individual’s long-term money. However, there is a risk that is often overlooked; the erosive nature of the personal income tax. Every American that earns interest in non-qualified CDs, checking accounts, money market accounts, bonds and other interest bearing vehicles must pay Uncle Sam a percentage of what was earned whether they used this money or not. Insurance products like annuities allow people to determine when, if ever in their lifetime, they are going to pay income taxes on their earned interest. This advantage can dramatically increase the amount of money people have available when they need it most.


Are insurance companies really safe? Absolutely! Insurance companies that follow the prescribed formulas, practices and traditions mentioned above can achieve a level of financial security for customers that other financial service entities can only dream of. Give us a call to evaluate if your current portfolio passes the safety test!

Lifetime Income Benefit Rider

For life time income benefit rider call us now

You’ve Done the Work. Now Enioy the Ride.

You worked hard. From saving up for your first car to building up your nest egg, you put in the time and the energy to prepare for what may lie ahead. And, now you have earned the opportunity to enjoy your golden years.

As you look forward and consider your retirement, you want financial solutions that provide savings protection and future growth potential. Fixed indexed annuities with a Lifetime Income Benefit Rider can offer you guaranteed income for life, tax-deferred growth and flexible payout options.

That way, with the right plan, you can spend more of your golden years enjoying your accomplishments while knowing your money is there for you when you need it.

Lifetime Income Benefit Rider (LIBR)

We are living longer lives and enjoying longer retirements. This means you have more time

to spend with your family, more time to travel, and more time to enjoy your milestones.

We believe that longevity should be celebrated. That’s why products has been designed with income you cannot outlive.

A Retirement Paycheck

Lifetime Income Benefit Rider affords you a consistent paycheck, so that your retirement is focused on what you want to do and not what you wished you could have done.

When you purchase the Lifetime Income Benefit Rider, you are guaranteed an income stream for the rest of your life. You will know the guaranteed minimum you will receive on a monthly, quarterly, semi-annual or annual basis.

The amount you receive is determined by a few simple factors:

  • Your Age – when you decide to begin taking income from your contract
  • Your Payout – whether you want income for as long as you or you and your spouse live
  • Your Timing – the longer you wait to take income, the higher the payouts will be

Rider Overview

  • Offers income you cannot outlive
  • Provides a steady paycheck throughout retirement
  • Allows for spousal income benefits

Key Annuity and Lifetime Income Benefit Rider Terms:

Annuitization – Conversion of accumulated value of your annuity into regular guaranteed income payments.

Contract Value -Value of the funds in your Base Contract.

Income Account Value (IAV) -This value is used solely to determine the amount of income you will receive under this Rider. It is not a traditionally accessible value. Instead, this serves as a measuring value tool for purposes of the Rider only.

IAV Multiplier -An annually declared factor used to calculate your IAV credit for the Indexing Income option.

IAV Period -The period of time during which the Income Account Value is credited the Income Account Value Rate.

IAV Rate -Annual effective interest rate that is applied to the Income Account Value.

Index Credit -The amount credited to your Contract Value based upon the performance of the index allocation selected.

Lifetime Income Benefit (LIB) -The amount of income you will receive should you elect to take payments. It is based upon your IAV, gender and age at the time of election.

Reset -The IAV Period can be reset once during the contract for most options. There are two situations when this may be advantageous:

  • At the end of the initial IAV Period, if lifetime income payments have not begun.
  • If the Contract Value is higher than the IAV.

Joint Life Payout – A legal spouse, as defined under federal law and at least 50 years old, payment is based on the age of the younger joint payee. Payments are made through the life of the last surviving spouse.

Rider Fee -The fee charged for this Rider, if applicable, is deducted from your Contract Value each year as long as the LIBR is active. This fee may change at time of Reset.

Single Life Payout – Payout factors determined based on your age at the time of payout election.

Surrender – Full or partial distribution of contract values.

Surrender Charge – Fee charged, when applicable, for full or partial distribution.

How Annuities Work for Your Retirement

An annuity is a Contract purchased from an insurance company to help you accumulate assets for retirement.

This means your Contract guarantees are backed by the financial strength and claims paying ability of insurance providers and Your funds are safe and secure.

Fixed Indexed Annuity

Indexed annuities are fixed annuities that provide an opportunity to potentially earn more interest than traditional fixed annuities and other safe money alternatives. This is done by basing interest earned on an increase in an equity or bond index.

While the value of this Contract may be affected by an external index, this annuity does not participate directly in any stocks or equity investments. You are not buying shares of stock or an index. Your money is protected from market volatility so that a down market does not subtract from your principal.

Tax-Deferred Growth

A primary advantage of indexed annuities is the opportunity for growth by allowing your savings and interest to grow tax-deferred. Unlike taxable investments, you pay no taxes on your annuity interest until you begin to take withdrawals or receive income. This allows your money to grow faster than in a taxable account.



Source: American Equity