Fixed Indexed Annuities: Market Growth Without Market Risk

A Fixed Indexed Annuity with EverGuard Advisors is a type of annuity that offers a guaranteed minimum interest rate, with the potential for higher returns based on the performance of a stock market index (like the S&P 500). It's designed to provide steady income with some growth potential, but it generally doesn't expose you to the full risk of market fluctuations.

A traditional fixed annuity offers a guaranteed fixed interest rate, providing predictable and stable returns. In contrast, a Fixed Indexed Annuity with EverGuard Advisors offers returns based on a stock market index, which can provide higher potential growth but with some risk, though still generally protected by a minimum guaranteed interest rate.

401k, IRA, and/or Roth can each typically be moved into a Fixed Indexed Annuity without exposure to taxation or penalty.

Fixed Indexed Annuities are generally considered safe because they are backed by the issuing insurance company, and they offer a minimum guaranteed return or 100% principle return. Returns can vary based on market performance. Speak with one of our EverGuard Advisors to see how a FIA can protect your assets.

Many Fixed Indexed Annuities have no upfront fees, but there may be charges for additional riders (such as long-term care or death benefit riders). Some FIAs may also have surrender charges if you withdraw money within a specific time frame (typically 7-10 years). Reach out to our EverGuard Advisors to discuss all aspects of our programs.

Withdrawals from a Fixed Indexed Annuity are usually allowed after a certain period, but taking withdrawals before the surrender period ends may result in penalties. Some annuities also allow penalty-free withdrawals (like a certain percentage per year) or for specific needs (e.g., medical emergencies or income riders). EverGuard Advisors will help you understand these aspects for your chosen provider.

The surrender period is the length of time during which you are restricted from withdrawing a significant portion of your funds from the annuity without incurring a penalty. It can typically last 5 to 10 years, depending on the contract. Your EverGuard Advisor will review all surrender details on your call.

Some Fixed Indexed Annuities allow for additional contributions after the initial deposit, while others do not. It's important to check the terms of the specific annuity to see if and how additional contributions can be made.

In the event of your death, the beneficiaries of your Fixed Indexed Annuity will typically receive the value of the contract, which may include any accumulated interest. Some contracts offer a death benefit rider that guarantees a certain payout regardless of market conditions.

In the event of your death, the beneficiaries of your Fixed Indexed Annuity will typically receive the value of the contract, which may include any accumulated interest. Some contracts offer a death benefit rider that guarantees a certain payout regardless of market conditions.

Earnings on a Fixed Indexed Annuity grow tax-deferred until you begin to withdraw them. When you do take withdrawals, the earnings are taxed as ordinary income. If you take a distribution before age 59½, you may incur a 10% early withdrawal penalty.

Fixed Indexed Annuities are ideal for individuals who want to protect their principal, enjoy some growth potential linked to the stock market, and are looking for a long-term investment for retirement. They may appeal to conservative investors who are near or in retirement and want to minimize risk while generating some additional growth.

While Fixed Indexed Annuities provide a minimum guaranteed return, they are subject to caps, participation rates, and spreads that limit potential returns. Additionally, early withdrawals may incur penalties, and the annuity’s performance is tied to an index, so growth can be limited compared to direct market investments.