Fixed indexed annuities
What’s a fixed indexed annuity?
A fixed indexed annuity (FIA) is a long-term insurance product designed to provide growth potential for your money without downside market risk.
What does “fixed indexed” mean?
Fixed indexed describes how the annuity’s interest is calculated—either a fixed interest rate or an interest rate based on the performance of an index.1
What’s an index?
An index is a collection of securities whose performance (or change in value) is used to benchmark the performance of a specific market segment or the overall stock or bond market. An index only measures market performance. It is not possible to invest in an index.
Higher growth potential than other fixed deferred annuities.
No downside market risk because your money is not actually in the market.
Growth is tax-deferred2 (it’s not taxed until you take it out), so it can compound over time.
You can convert it into a series of income payments in retirement.
What’s compound interest?
Compound interest means you earn interest on the initial amount of money you put into an account AND on the interest that money accrues. As the annuity grows, the interest it earns is calculated on the new, higher balance each [interest term].
How do FIAs work?
You purchase the annuity contract with a lump sum.
The interest you earn is tied to a fixed interest rate or the performance of an index, or both.1 You choose.
- A fixed interest rate means the interest you earn is steady and predictable each year.
- An index-based interest rate has more growth potential, but is less predictable.
And pays you
You can get your money back, including interest, after the surrender charge period. Your payback can happen in a number of ways, including a lump sum or regular payments that can continue for life.
What’s a surrender charge period?
Most annuities allow you to withdraw a certain percentage of your account free of charge from the start. However, because annuities are designed as long-term products, if you withdraw more than the free withdrawal percentage early on, you will incur a penalty known as a surrender charge. The surrender charge period is the amount of time you need to wait before you can withdraw additional money without incurring surrender charges.
Products to consider:
Symetra Edge Plus®
Looking to grow your retirement savings with no market risk?
Symetra Income Edge
Looking for guaranteed income in retirement with growth potential and no market risk?