A Volatility Buffer: Discussing Fixed-Indexed Annuities With Retired Clients
February 19, 2025 by Robert Cannon
Retirees face many challenges when it comes to managing investment risk. Balancing the need to preserve savings while still seeking growth in a volatile market can be daunting. In my career as a financial advisor, I’ve found that a fixed-indexed annuity (FIA) stands out as a highly effective solution.
For financial advisors, incorporating FIAs into client discussions offers multiple advantages. When advisors introduce a solution that addresses both growth potential and principal protection, they can demonstrate a deep understanding of their clients’ needs.
Read the full story via Forbes
Wink’s Moore on the Market: I am going to be nitpicky on your indexed annuity article, Robert Cannon, MBA, CFF®, AIFA®.
Just a heads up that floors on indexed annuities are as high as 2%.
Also, one need not elect an “income rider” to be afforded guaranteed lifetime income on an annuity. Annuitization may not be popular, but it only costs FREE NINETY-NINE!
And indexed annuities are not “investments.” Any insurance regulator will tell you that they are INSURANCE.
Last, but not least, “…FIAs often come with surrender periods that can last several years, during which clients face penalties for withdrawing funds early.”
What about the annual penalty-free withdrawal provision? It allows the client to take out [10%] of their annuity’s value, each year, without a surrender charge being applied.
I appreciate the intent of this piece. I am glad that Forbes Finance Council published this. We need more consumer education about ALL annuities. -sjm
