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Is Wall Street Changing Its Tune?


You don’t generally expect a periodical like the Wall Street Journal to publish positive stories about fixed indexed annuities, yet several times in the past few years, they’ve done exactly that. And they’re not alone. Investment-focused publications like Barron’s, Investment News, and OnWallStreet have done the same. While all of these positive articles are bringing up points that people in the annuity industry have always known to be true, they are new admissions for the Wall Street crowd and they indicate that the tides might just be changing.

It’s not surprising, when you see the turmoil in the stock market in recent years, with the Great Recession, insecurities about foreign economies, and Brexit, pre-retirees are concerned about how volatility can impact their retirement plans and nest eggs. And they want to find a way out—something fixed indexed annuities can offer them.

What people in the annuity industry have always known, and what Wall Street is just now picking up on, is that fixed indexed annuities are a way to guarantee* a post-retirement income while still being linked to market upswings without losing money during downturns.

One article in the Wall Street Journal noted that America simply seems to be behind the times in regards to annuities, noting that seniors in other countries look far more favorably on annuities than Americans have in the past. It’s possible that this is because America’s focus is often on growth—which is part of what makes this country great. But when it comes to retirement funds, growth doesn’t concern retirees and preretirees nearly as much as guaranteed income does.

No matter what’s causing this change in the Wall Street narrative and making it pro-fixed-indexed-annuity, it’s a positive movement for everyone. With the ability to participate in upside market gains, the potential for a guaranteed lifetime income,* and innovative added features such as death benefits and nursing home benefits, fixed indexed annuities offer true financial flexibility.

*Guarantees are backed by the financial strength and claims paying ability of the insurance company issuing the product.

This information is provided as general information and is not intended to be specific financial guidance. The information and opinions expressed herein are from sources believed to be reliable; however, we make no representation as to its accuracy or completeness. Before you make any decisions regarding your personal financial situation, you should consult a financial, legal or tax professional to discuss your individual circumstances and objectives.

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