Fixed Indexed Annuities
Market-linked growth potential with downside protection. Earn more than a savings account without the risk.
A fixed indexed annuity (FIA) is designed to hedge against market downturns and crashes. Your return is tied to a benchmark index like the S&P 500 — but your principal is protected when markets fall.
There are few financial products that offer both principal protection and the ability to meaningfully beat savings account rates. FIAs are built for risk-averse investors who want market participation without full volatility.
How Fixed Indexed Annuities Work
You participate in some of the market's upside. In downturns, a guaranteed minimum return protects you — your principal stays intact regardless of what the index does.
In a Bull Market
Your return is tied to index performance up to a cap or participation rate. You won't capture 100% of the upside — that's the tradeoff for downside protection — but you still participate in growth.
Example: if the S&P 500 gains 18%, your FIA might credit 10–12% depending on contract terms.
In a Bear Market
Your contract has a guaranteed minimum — typically 0% or slightly above. When markets fall, your principal is protected. You don't lose what you've accumulated.
This "floor and ceiling" design is exactly what the 5–10 years before retirement calls for.
Key Benefits
Principal Protection
Your original investment is protected from market losses. In a down year, your account value does not decrease due to index performance.
Market-Linked Growth
Earn more than a savings account or CD. Growth is indexed to the market without direct exposure to its swings.
Tax-Deferred Growth
Earnings accumulate without annual taxation. You only pay taxes when you take distributions — potentially at a lower rate in retirement.
Flexible Payout Options
Choose lump sum, periodic distributions, or a lifetime income stream. Annuitize when you're ready to convert growth into reliable income.
Carrier-Backed Security
FIAs are backed by the financial strength of the issuing insurance company — not subject to stock market volatility like variable annuities.
Guaranteed Minimum Return
Your contract specifies a floor on returns. Even in the worst market years, you won't earn less than that guaranteed minimum.
Who Should Consider a Fixed Indexed Annuity?
Major market corrections have occurred at the end of generational spending waves throughout history. With Baby Boomer retirements continuing, the question of whether a significant correction is still ahead remains open. I help clients compare FIA options across multiple carriers to find the right balance of growth potential and protection for their situation.
Other ways I can help
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Affordable protection for 10–30 years for your family.
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Helps pay for home care, assisted living, or nursing facilities.
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Safe, guaranteed growth and steady retirement income.
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Covers funeral and final costs for your loved ones.
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No pressure. No obligation. No jargon. Just an honest conversation about what makes sense for your situation.
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