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Income Annuities
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Fixed Index Annuities
What is an Indexed Annuity?
An annuity is a type of life insurance product that's designed to provide you with enough income to stay afloat through your retirement, and the indexed annuity is a more specific kind of annuity for which the returns are based on an equity-linked index. One typically buys an indexed annuity from an insurance company. In the following, you'll find out more about how indexed annuities work and what you might expect in terms of returns.

Conservative Investment Plan
Compared to other retirement vehicles you might choose, the indexed annuity is a fairly conservative way to save. When one purchases an indexed annuity contract, the contract will be linked to the performance of some stock index, most often the Standard and Poors 500), which acts largely to determine the interest rate. However, the link between the performance of the index and the performance of the indexed annuity can vary greatly depending on the specifics of your contract.
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LEARN MORE ABOUT ANNUITIES

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    We help you determine if an annuity is right for you by offering an income analysis at no cost.

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Fixed Index Annuity Potential Benefits
  • Annual Lock-In (Keep your Gains)
  • Annual Reset (Each year is new)
  • Premium Bonus
  • Probate Avoidance
  • Multi-generational IRA
  • Guarantee of Principal
  • Lifetime Income Benefit Rider
  • Participates in S&P 500, Nasdq, and many others
  • Protection from Market Downturn
*** Not all Indexed Annuities are the same, please review annuity illustrations
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#1 MISTAKE RETIRES MAKE WHEN TRYING TO INVEST IN THE STOCK MARKET
  • What Has Out-Performed The S&P 500 For The Last 12 Years
  • Why It May Be Aa Mistake To Withdraw Money From The Market During Retirement
  • Potentially The Biggest Financial Danger Facing Retiring Americans
  • How You May Avoid The Potential Negative Impact Which Can Deplete A Retirement Portfollio
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What's a state Guaranty Association and how does it work?
Life, health and long-term care insurance, or annuities - the Guaranty Association will pay up to the policy limit, or up to $500,000, whichever is lower.
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Index annuities are linked to an outside index and help provide the potential for growth when the index rises (without direct exposure to it). When the index rises, your annuity value can increase. When the index goes down, you don’t lose money; it just stays the same. Indexed annuities offer a wide range of guarantees* and growth potential.
INDEX ANNUITY PROS
  • Offers confidence about your retirement savings strategy and principal protection
  • A rate which typically performs better by having participation in market indices
  • No exposure to loss when the market drops
  • Helps provide a hedge against inflation
  • Good alternative for someone looking for a secure vehicle but also likes to follow the market​
INDEX ANNUITY CONS
  • Your money is locked in the annuity for a pre-determined number of years. If interest rates go up, that money is typically not available to move during that time (or surrender charges can apply)
  • There is either a return cap or a maximum participation rate linked to market earnings
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Crediting Methods
How the annuity grows depends upon the annuity you choose. On a growth focused annuity, you will use a participation rate and either a Cap or Spread rate. 

HERE ARE EXAMPLES
  1. ​Participation Rate - The Participation Rate is the percentage of any increase in the index value that will be used to calculate the interest credit percentage. For Example: If the Participation rate was 80% and the index made 10%, you would net 8%. This works good in a volatile market and low volatility market depending upon your rate.
  2. Cap on Growth - Some annuities may put an upper limit, or cap, on the percentage change in the index value. This is the maximum rate of interest the annuity will earn. For Example: If the participation rate was 100% and a had a cap rate of 6% you would receive a maximum of 6%. So if index value was 7.2%, then 6% will be credited not the 7.2%. The higher the cap the better. This works good in a normal market under 10%, but will not capture a great market with high returns due to the cap.
  3. Spread Cost on Growth - Margin or spread A specified percentage used in certain calculation methods with fixed indexed annuities to determine the amount of index-linked interest that is credited to the annuity. For Example: If the participation rate is 100% and spread cost was 2%, you would get 100% of what the index made less a spread cost of 2%. So if the index made 10% you would subtract 2% and you would receive a net 8%. 

WANT TO LEARN MORE???
Download these resources
  • Allianz - Crediting Methods
  • North American - Crediting Methods
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HOW DO THEY COMPARE???
​
"ILLUSTRATIONS ARE FOR EDUCATIONAL USE ONLY"

Please ask for your customized Illustration Comparison
GROWTH ANNUITY 
​
This is a sample of a Fixed Index Growth Annuity with no Income rider but strictly used for potential higher returns linked to a market based index offering no risk and in many cases no fees.
GROWTH ANNUITY
INCOME ANNUITY 
(Wait 5 Years for Income)

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​This is a sample comparison between three Fixed Index Annuities with an income rider demonstrating how guaranteed income would pay a lifetime income if a person waits 5 years before taking income.
INCOME ANNUITY (Start in 5 Years)
INCOME ANNUITY
(Wait 10 Years for Income)


​This is a sample comparison between three Fixed Index Annuities with an income rider demonstrating how guaranteed income would pay a lifetime income if a person waits 10 years before taking income.
INCOME ANNUITY (Start in 10 Years)
*** These samples above are examples which may not be current or customized to you. Please ask for your own up to date comparison at no cost. And as always, it’s important to keep in mind that past performance is definitely no guarantee of the future results that you’ll receive in most any financial vehicle.
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INDEX WEBSITES
Popular Financial websites
  • Yahoo Finance
  • Bloomberg
Popular Indexes
  • ​http://us.spindices.com/
S&P 500 Index
  • Performance
  • S&P 500 Low Volatility Daily Risk Control 5% Index (TR)  / Performance (SPLV5UT:REU)
  • S&P 500 Daily Risk Control 2 8% Index Performance (SPX8UN2) (Athene)
  • ​S&P 500 Average Daily Risk Control 10% USD Excess Return Index
  • S&P Marc 5% Excess Return Index
Barclays Atlas 5 Index (Equitable)
  • Performance (BXIIAT5E)
  • Index Details​
Barclays Trailblazer Sectors 5 Index (F&G)
  • Performance (BXIITBZ5)
  • Index Details​
Barclays US Low Volatility II ER Risk Controlled Index 5%
  • Performance (BXIILVU5)
  • Barclays Page
​BlackRock iBLD Endura VC5.5 ER Index (Pacific Life)
  • Performance (IBLDE55E)
  • Index Details
  • Key Features
BNP Paribas Multi Asset Diversified 5 Index (Athene)
  • Performance (BNPIMAD5)
  • Key Features
  • Paribas Multi Asset Diversified
CIBC Balanced Asset 10 (Two Indexes) (Pacific Life)
  • ISHCHICAP/ETF (IZZ)
  • iShares 20+ Year Treasury Bond ETF (TLT)
Janus SG Market Consensus Index (Athene)
  • Performance (SGMDJMC2)
​Morgan Stanley Dynamic Allocation Index
  • Performance (MSUSMSDA)
  • Key Features
Merrill Lynch Strategic Balanced Index​
  • Performance (MLSB)
  • Key Features 
Morningstar Dividend Yield Focus Target Volatility 5 TR USD (Athene)
  • Performance (MSDIHDVA)
  • Key Features
​Monex Precious Metals
  • Performance
Pimco Global Optima Index 
  • Performance (PIMGOPT:IND)
  • Key Features
Security Benefit Life
  • Annuity Linked TVI Performance (ALTVI)
  • Guggenheim TBP Blended Index Performance​
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FREE Educational Annuity Books that you can read about different topics, written by Josh Mellberg. 
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    DOWNLOAD FREE
    Annuity Education Books

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BIRDSEYE FINANCIAL DISCLOSURE
Tax and Legal Disclosure

Birdseye Financial, Corbin Lindsey and any associate affiliated with Birdseye Financial, does not offer tax or legal advice. We provide strategies for educational purposes only. You should consult your tax or legal professional for complete information regarding any tax and legal matters.

Website Content
The information listed on this website and on any document from Birdseye Financial that is provided by Birdseye or by a third party has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Birdseye Financial. While the publisher has been diligent in attempting to provide accurate information, the accuracy of the information cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legal interpretations. Accordingly, neither the publisher nor any of its licensees or their distributors shall be liable for any loss or damage caused, or alleged to have been caused, by the use or reliance upon this information.

All items on this website are not to be considered a recommendation to purchase or to sell an insurance or investment holding. No insurance company has endorsed or reviewed this website content. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used within this website are the property of their respective owners.

We are NOT affiliated with the U.S. Government or Federal Medicare Program

Product Illustrations
​And as always, it’s important to keep in mind that past performance is definitely no guarantee of the future results that you’ll receive in most any financial vehicle.

Online Forms
​Should you complete an online form of any type, you are agreeing to be contacted by Birdseye Financial or one of our referral partners.
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