Let’s revisit why to consider a fixed indexed annuity over a CD? Because of stock market volatility money needed in the short term could create a loss if invested in equities. Consider fixed rates for short term dollars. Conversely, because of interest rate volatility, money needed in the long term invested in CD’s may suffer inferior returns. Think upside potential for long term dollars. Here’s an idea using a fixed index annuity to take advantage of volatility to create returns while protecting principal from market risk:
Sam, age 66, has $100,000 in a 5-year CD that will renew at 1.17%
- If nothing changes, the $100,000 will grow to $109,752 in 8 years.
- Consider allocating $40,000 in a fixed account that will earn about the same return as 100% of the funds deposited in a CD
- Place the remaining $60,000 in the S & P Annual Reset Point to Point (best case 5.75% return) and potentially have $95,718 in 8 years.
Contact Mr. Mark Gardner today at 214-762-2327 or email him at MarkGardner@RetireWellDallas.com to further discuss your personal issues and needs