Stephen Dybwad: Exploring parallels between crop insurance and fixed index annuities
December 19, 2023 by Stephen Dybwad
Imagine you are a farmer. You have been working the land for years, cultivating crops, and raising livestock. You have grown accustomed to the rhythms of the seasons, the unpredictable weather patterns, and the vagaries of the market. You have learned to adapt to the changing circumstances and to make the most of what you have. But as you approach retirement age, you realize you need a new strategy. You need a way to protect your assets and ensure a steady income stream for the rest of your life. That’s where fixed-indexed annuities come in.
Click HERE to read the full opinion via The Daily Independent
Wink’s Moore on the Market: I never thought I would see a comparison of indexed annuities to crop insurance.
And yet…
There it is!
I don’t think this article did a good job at communicating that the minimum guarantee interest on indexed annuities is 0%, or the Minimum Guaranteed Surrender Value. To me, it reads like there is a guaranteed minimum interest rate, credited to the contract, in the event of market declines. This is only the case for a couple handfulls of these products.
Other than that, I thought that Steve Dybwad did a good job on this.
Crop insurance comparisons be darned! -sjm
