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​Indexing: Safety and Opportunity

SAFETY

​Are you aware of the unique product called “Fixed Indexed Annuities,” which can help you achieve safety and growth on the same dollar at the same time? Through innovative financial tools, you can make sure your nest egg is kept safe from market declines. We’ve found there is more to be gained showing someone how to avoid the losses than trying to pick the winners! As you look ahead at the likelihood of increasing volatility in the market, it is important that you preserve your nest egg; it is the engine that drives your retirement future, from negative volatility.

​OPPORTUNITY

​Despite our current economy and gloomy predictions, there are still likely to be periods of tremendous opportunity in the market. What if it were possible to preserve your assets from market downturns without having to make an emotional decision to buy, sell, or hold any one stock? What if you could take advantage of a strategy that automatically takes you out of harm’s way during bad years, and positions you for opportunity during good ones? The secret is in linking safely to the market without putting your principal there. By “indexing” to the market instead of “owning” the market you can link to indices safely on autopilot and lock in your gains without creating a taxable event. According to a recent study by the Wharton School of Finance, because of its ability to lock in credited interest in up years and not experience losses in the down years, while not specifically designed to compete with the market, some indexed products outperformed the broad market over the last 15 years! ¹

​PRODUCTS

​Some will find this news sounds too good to be true. It is hard to believe that there are strategies available that could have preserved your assets from the devastating downturns of the past. Certainly, most of us know how to keep our money safe: insurance companies have been preserving our money for over a century in vehicles like Annuities and Life Insurance. Innovative enhancements to these safe vehicles allow you to experience growth in Fixed Indexed Annuities* and Indexed Universal Life Insurance**.

​The catch? Most indexed products are designed for long-term or nest egg money. Dollars that need to be spent in the near term are best placed elsewhere. For those who have the luxury of time, Indexed Annuities are regulated by governmental agencies. These well-designed vehicles have many positives and two potential negatives. The first negative is that they don’t capture all the up of the market and the second is that they are initially not 100% liquid. These plans have surrender penalties that eventually expire, resulting in the policy becoming 100% liquid. Paying a surrender penalty is a conscious decision…Market loss is not. We offer a variety of plans ranging from 5 to 16 years in length offered by many different Insurance Companies.

Contact Us

(301) 938-1802
3 Research Place Suite 103
Rockville, MD 20850
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Learn how to Protect your Nest Egg
¹ Geoffrey VanderPal, D.B.A, CFP, CLU, CFS, RFC; Jack Marrion; and David F. Babbel, Ph.D.; “Real-World Index Annuity Returns”; http://www.fpanet.org/journal/currentissue/tableofcontents/realworldindexannuityreturns/; accessed 01/01/2013

*Equity Indexed Annuities (EIA, also known as Fixed Index Annuities – FIA) are tax deferred products; they are not tax free. When withdraws are made from an EIA – the portion of the withdrawal that is not principal will be taxed at applicable income tax rates. Premature distributions (before age 59 1/2) may be subject to an IRS penalty of 10%, in addition to applicable income taxes. If receiving a bonus with an EIA purchase, you may incur higher surrender charges and be subject to a longer surrender period. Tax-qualified assets (e.g. IRA or Roth IRA assets) in EIA’s may not be eligible for additional tax benefits. Investors should have adequate resources to cover liquidity needs. EIA’s are not: a deposit of any bank; FDIC insured; insured by any federal government agency; or guaranteed by any bank or savings association. Riders and guarantees may be available at additional cost and may not be available in all States. Guarantees are based on the claims paying ability of the issuing company.