Fixed Index Annuity: Why It’s Gaining Popularity Now
April 2, 2024 by Marguerita Cheng
Every day, 12,000 baby boomers in the United States reach the age of 65, according to the Census Bureau. By 2030, all baby boomers will be 65 or older.
One consequence of this demographic trend is that the investment objective of baby boomers has shifted from a desire for growth to a need for protection. It’s not surprising, then, that annuities that offer downside protection and guaranteed returns have become more popular than those offering high growth potential.
Click HERE to read the full story via US News
Wink’s Moore on the Market: I seriously throw up in my mouth a little, every time someone calls them “equity indexed annuities.”
Let’s stop that.
We don’t want to give consumers the mistaken impression that these products perform like equities. They don’t.
I’d also like to clarify to U.S. News & World Report that you can usually annuitize an indexed annuity, while there are still surrender charges on the contract.
And- the indexed annuity purchaser is never invested directly in the market.
Lastly, they completely lost me at “high fees.” Indexed annuities do not have administration fees or mortality expenses.
I was thrilled at the accurate sections of this piece, but the inaccuracies will prevent me from labeling it as “positive press.” -sjm
