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Growth potential without market losses Your money tracks an index (like the S&P 500) for growth, but it's not actually invested in it. If the market goes up, you get credited interest based on the index performance. If the market tanks, you just get a zero for that period, not a loss. It's the rule of "you can win, but you can't lose."
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Tax-deferred growth Your gains don't get taxed until you pull money out, which lets the growth compound faster. Pretty handy for long-term planning.
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Principal protection Your original money is protected by the insurance company. This is a big one for people who want to grow without sleepless nights.
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Often stronger growth than a traditional fixed annuity FIAs usually offer higher growth potential than a plain fixed annuity, thanks to index-based credits.
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Options to add various riders: Lifetime income, Guaranteed withdrawal amount, Enhanced income, Death benefit, Inflation, Illness.
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May offer free withdrawals Most include 10 percent penalty-free withdrawals each year after the first year.
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No probate on death benefits If you pass away, your beneficiary gets the remaining value directly, skipping probate and delays.
Fixed Indexed Annuities
Protect your principal while capturing market growth potential
What Are Fixed Indexed Annuities?
Fixed Indexed Annuities (FIAs) are insurance contracts that offer the opportunity to earn interest based on the performance of a market index, while protecting your principal from market losses. They provide a balanced approach to retirement planning, combining growth potential with downside protection. FIAs come in two primary types, each designed to meet different retirement goals.
Ready to Learn More?
Let our strategists help you explore if a Fixed Indexed Annuity is right for your retirement plan.
Schedule Your Free ConsultationAnnuities: Myths vs. Reality
Separating fact from fiction to help you make informed financial decisions
Understanding annuities is crucial for retirement planning. Let's address common misconceptions with clear, factual information.
"Annuities carry hidden fees"
Some annuities may have surrender charges during their surrender period, but not all do. Optional riders like guaranteed income or healthcare benefits may have additional fees that add more value to your policy.
"Annuities are complicated"
Annuities with guaranteed lifetime withdrawal benefits work similarly to pensions or Social Security, offering a reliable lifetime income stream under specific conditions.
"Annuities are tied to the stock market"
Fixed indexed annuities are not directly invested in the market. Instead, they are linked to an index and can grow when the index increases—without risk of loss when it drops.
"I won't have access to my money"
Many annuities allow penalty-free withdrawals and include riders that offer full access during certain life events, such as illness or long-term care needs.
"The insurance company keeps my money when I die"
For fixed and indexed annuities, any remaining value passes directly to your beneficiaries, often avoiding probate and ensuring your legacy continues.
"I must pay my advisor directly"
You don't pay advisors directly for purchasing an annuity. Licensed producers are compensated by the insurer, not from your premium. Visit PowersFS.com to find a professional.
Ready to Separate Fact from Fiction?
Let our experts help you understand how annuities can fit into your retirement strategy with clear, honest guidance.
Schedule Your Free ConsultationOutliving Your Money
Retirees should plan for a longer retirement – Today a couple at age 65 has a 50% chance of living beyond 90.
The #1 worry that keeps retirees up at night is running out of money
Life Expectancy
Probability of a 65-Year-Old Living to Various Ages
Plan for Longevity
With increasing life expectancies, retirement planning must account for 25-30+ years of financial needs. A comprehensive strategy is essential for financial security throughout retirement.
50%
Chance of living past 90 for couples at 65
25+
Years of retirement to plan for
92%
Probability at least one spouse reaches 95
Source: ssa.gov
Don't Outlive Your Money
Let our retirement specialists help you create a comprehensive plan that ensures your financial security for 25-30+ years of retirement.
Schedule Your Free ConsultationGrowth-Focused FIAs
The "steady but savvy" option in the annuity world. Your money tracks an index for growth without the risk of market losses.
Income-Focused FIAs
Designed to provide guaranteed lifetime income streams, offering peace of mind and financial security in retirement.
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Guaranteed lifetime income With optional income riders, you can convert your annuity into a reliable income stream that you cannot outlive, similar to a pension or Social Security.
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Predictable retirement planning Know exactly how much income you'll receive each month or year, making budgeting and financial planning straightforward and stress-free.
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Protected from longevity risk No matter how long you live, the income continues. This eliminates the fear of outliving your savings.
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Still tied to index performance Many income-focused FIAs still offer index-linked growth potential on the underlying account value, providing upside opportunity alongside guaranteed income.
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Flexible income start dates You can choose when to begin taking income, allowing the annuity to grow first if you're not ready to start withdrawals immediately.
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Legacy protection options Many contracts include death benefit provisions that ensure remaining value passes to your beneficiaries.
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Protection against market downturns Your income guarantee remains intact regardless of market performance, providing stability during volatile periods.
Great Fit If You Want a Safer Growth Bucket
FIAs tend to work best for:
Folks who want growth but hate volatility
People filling the "safe but still-growing" part of their retirement plan
Anyone who wants protection from market crashes without walking away from upside
Ready to Find Your Perfect FIA Strategy?
Whether you're focused on growth or guaranteed income, our specialists can help you choose the right Fixed Indexed Annuity for your retirement goals.
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