I do think that indexed annuity sales this year will eclipse the 2019 record.

October 31, 2022 by Sheryl J. Moore

 I really liked this article, Why Fixed Indexed Annuities Are Back by David Blanchett. However, David Blanchett, I am having a little trouble with the suggestion that the “relative appeal of FIAs is going to evolve over time as the market changes,” in the manner that you suggest.
Indexed annuities achieved record sales levels of $73.2 billion in 2019, when the average cap on these products was a mere 3.85%.
Data suggests that CD rates and volatility in the markets drive sales of indexed annuities, in a manner that cap rates simply don’t.
That said, I do think that indexed annuity sales this year will eclipse the 2019 record.
I appreciated the suggestion that, “While FIAs do have an equity component, it’s important to realize they are far more bond-like than stock-like when including in a portfolio.” Bravo!
Give this one a read, and let me know what you think– join in the conversation on LinkedIn HERE!  -sjm