Accumulation & Keep Upside Potential!
Interest rates are still hovering at low levels. Guaranteed
accumulation is essentially moving at a snails pace. Finding
concepts or products to enhance these gains on a guaranteed
basis is becoming more difficult. The drop in issue rate and
overall contractual minimum guaranteed rates have made yield
harder to come by and predict. Many risk averse clients are
earning little to no yield. Sometimes being just a little
creative can open a Fixed Indexed Annuity to these risk averse
Diversifying between two very simple and competitive crediting
methods a client can have the benefit of a nice guaranteed fixed
and the upside of
triple that fixed return. Here is how:
Eight Year FIA With Two
Annual Point to Point (Pt 2 Pt) With Cap Of 5.75%
Annual Fixed Rate of 2.55%
A client in this FIA can get a guarantee of no less 1.275% for
the year with an upside of 4.15%. How? Let us assume a client
has $200,000 in premium and allocates $100,000 to each crediting
Results Assuming A
Positive Index Year
If the index is up for that year the client earns up to
the 5.75% cap on the Annual Pt 2 Pt. Assuming the index hit the
cap the gain would be $5,750.00. The fixed bucket would earn an
additional $2,550.00. The accumulation value would be
$208,300.00 or a gain of 4.15%. (See
below for a 3.00% index year sample)
Results Assuming A Negative
If the index is down for that year the client earns nothing on
the Annual Pt 2 Pt and $2,550.0 on the fixed bucket. $202,550.00
or a gain of 1.275%.
Guarantee Better Than Most
Here is a way to beat the lower fixed rate alternatives
while having a taste of the index likely upside for additional
earnings. Tax deferral, compounded gains and NO FEES for
guarantees! As rates and caps rise this method will become even
more attractive for the risk averse saver.
3.00% Index Gain Sample
A Pt 2 Pt index increase of 3.00% ($3,000) and a Fixed
Rate still kicking off the $2,550 would make an accumulation
value of $205,550.00. A gain of 2.77% for that year. Locked in
and compounded annually.
Marketing, Illustrating, Building Fixed Annuities since 1995.
The idea is to not outlive
Maximizing it at the same time does not hurt.
Thinking about using a Fixed
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