What is an FIA?
A fixed indexed annuity also known as an (FIA) is a contract between you and an insurance company. FIAs offer you the opportunity for tax-deferred growth based in part on changes in a market index, plus the option to convert your annuity into a steady, guaranteed, lifetime income stream, while at the same time protecting your hard-earned principal from the uncertainty of market volatility.
When you purchase an FIA, you can pay for it in either a single lump sum or multiple payments over time. In return, the insurance company takes the risk of market downturns to protect your annuity value and promises to make payments from the annuity to you in a single payment or series of payments, over a fixed number of years.
Money in an FIA earns interest based on changes to market. Annual interest is calculated using a unique formula based on changes in the performance of stocks (S&P, Dow Jones, NASDAQ), bonds (Capital Markets Bond Index), or commodities (CBUE). The index is used as an external benchmark – you do not actually invest your funds in it. If you believe this is a good investment opportunity for you, give Warsh Financial Group a call to learn more!