Three Reasons Fixed Index Annuities Are Better Than Bonds In Your Retirement Portfolio
May 30, 2024 by Aaron Cirksena
When financial advisors seek ways to manage risk in retirement investing, they typically look to bonds, which are traditionally seen as the optimal asset for offsetting the volatility in stock markets. By orchestrating a healthy mix of stocks and bonds in retirement accounts, advisors create a higher level of stability.
Click HERE to read the full story via Forbes
Wink’s Moore on the Market: I don’t know…are we okay saying that indexed annuities have a lower cost than bonds?
How much higher would the rates on these products be, were commissions not being paid. That IS an implicit cost.
And it would have been helpful to reiterate that indexed annuity purchasers “…benefit from [LIMITED] stock market gains without exposure to the risks associated with market volatility.”
Isn’t it a little disingenuous to say “FIAs change the equation by giving investors access to a low-risk option that earns from stock index increases. The S&P index, as an example, has returned a historic annualized average return of approximately 10% between the time it was launched in 1957 and the end of 2023?”
I mean, the performance of the stock market is irrelevant if the caps/pars/spreads aren’t applied, right? -sjm
