Investors should always consider options that not only protect principal, but also provide the potential to earn an attractive rate of return. A fixed indexed annuity (FIA) is a great option to consider for clients who want to benefit from the potential of the market without being directly exposed to its volatility.

The long-term investment in an FIA allows assets to grow tax-deferred. For an additional cost, FIAs can offer an optional guaranteed lifetime withdrawal benefit. The guaranteed lifetime withdrawal benefit (GLWB) provides clients with a guaranteed “retirement paycheck” for both themselves and their spouses. This guaranteed income is designed to help cover essential living expenses in retirement, and it grows each year income is deferred (up to 10 years).

John Poston