Fixed Indexed Annuities: Growth Without Loss

Fixed Indexed Annuities: Growth Without Loss

Get market-linked gains with zero downside risk.
“You don’t need to hit home runs to win—you just need to avoid striking out.” — Patrick Kelly

If you're nearing retirement or already enjoying it, your biggest financial fear likely isn't earning a high return—it's losing what you’ve worked so hard to build.

That’s where Fixed Indexed Annuities (FIAs) come in.

FIAs are uniquely designed to help you grow your money during retirement, participate in market-linked returns, and most importantly—never lose a dime when the market goes down.

Let’s break down how FIAs work, why they’re growing in popularity, and whether they’re the right fit for your retirement strategy.

🔍 What Is a Fixed Indexed Annuity?

A Fixed Indexed Annuity is a type of annuity that offers:

✅ Principal protection (your money can’t lose value due to market downturns)
✅ Growth potential tied to a market index (like the S&P 500)
✅ Tax-deferred accumulation
✅ Optional lifetime income riders
✅ No direct investment in the market—just linked performance

It’s the sweet spot between safety and opportunity.

📈 How the Growth Works

Here’s the key:

• When the index goes up, your annuity earns interest—up to a cap (e.g., 9%) or based on a participation rate (e.g., 70% of index gains)

• When the market goes down, your annuity earns 0%—but you lose nothing

You trade off unlimited upside for peace of mind and guaranteed protection.

📊 FIA vs. Other Retirement Accounts

| Feature | FIA | Stocks/Mutual Funds | CDs |
|-------------------------------|----------------------------------|----------------------------------|------------------------------|
| Market-linked growth | ✅ Yes | ✅ Yes | ❌ No |
| Risk of losing principal | ❌ No (0% floor) | ✅ Yes | ❌ No |
| Tax-deferred growth | ✅ Yes | ❌ Unless IRA-based | ✅ Yes |
| Income guarantee options | ✅ Available | ❌ Not built-in | ❌ |
| Liquidity features | ✅ Yes (with limits) | ✅ Yes | ❌ Usually locked in |

FIAs offer a unique combination of safety, growth, and income potential—perfect for conservative or risk-weary retirees.

💸 Income Riders: Create Your Own Pension

Most FIAs allow you to add an income rider for an additional fee. This lets you:

• Create a guaranteed lifetime income stream

• Plan joint payouts for you and a spouse

• Get income even if the account value drops to zero

Think of it as building your own private pension—without depending on the stock market.

📘 Real-World Example: Growth + Security

Sharon, age 60, invests $200,000 into an FIA. Her contract earns:

• 7.5% in a good market year

• 0% in a down year

• 6.2%, 5.3%, 8.0%, 0%—over the first five years

Her average growth is strong, and she never loses money during downturns.

At age 65, she activates an income rider and starts receiving $13,000/year for life, regardless of market performance.

🤔 Is an FIA Right for You?

Consider an FIA if you:

✅ Are near or in retirement
✅ Want market-linked growth without market risk
✅ Want tax-deferred accumulation
✅ Are tired of watching your 401(k) swing like a yo-yo
✅ Want guaranteed lifetime income without stress

🛡️ How KEyO Helps You Choose the Right FIA

There are hundreds of annuities on the market—but only a few are truly worth your time. At KEyO, we:

✅ Compare top-rated carriers and products side-by-side
✅ Match your needs to the right income and growth features
✅ Explain fees, caps, and riders with total transparency
✅ Customize a retirement plan that fits your goals and risk tolerance

With Trusted Care. Tailored for You., KEyO helps you use FIAs to grow safely and retire confidently.

Final Thought:
Fixed Indexed Annuities offer the upside of growth with none of the fear. If you want to stop worrying about what the market does next, this might be the smartest tool you’ve never considered—until now.