Upside Potential And Downside Protection With A Competitive Cap
Win By Not Losing
As you near retirement, the possibility of a market downturn may become a greater concern. However, there is a way to achieve upside potential and downside protection. A fixed-indexed annuity (FIA) allows you to participate in positive market performance (up to a cap) and locks in gains—this means your account value is protected and will remain level, even when the market declines.
Comparing index performance to an FIA
Consider a $100,000 IRA invested in stocks that make up the S&P 500® Index, and a $100,000 FIA with all purchase payments allocated to an indexed strategy with a 6% cap. Going back to 2000, see how the FIA would have locked in gains during times of market declines.
This graph is designed to help you understand how a fixed-indexed annuity works. It is not intended to show past or future performance of an indexed strategy. Graph illustrates historical performance of S&P 500 since 2000, excluding dividends paid on the stocks included in the index. Hypothetical fixed-indexed annuity assumes a $100,000 purchase payment, allocated to an S&P 500 annual point-to-point index strategy with a 6% cap for each calendar year in the 18-year period shown in the graph. However, during the period shown in the example, the actual caps that we applied to our fixed-indexed annuities varied by product and from term to term and ranged from 2.00% to 10%. In addition, the one-year terms for our fixed-indexed annuities are not based on a calendar year but start on the 6th and 20th of each month. A different cap and a different term start date would affect the performance of the hypothetical FIA and result in higher or lower account values than those shown above. For example, if we assumed a 2.00% cap, then the account value at the end of 2018 would have been $126,824.
This example assumes no money is withdrawn from the FIA. If you take a withdrawal or surrender an FIA during the early withdrawal charge period, an early withdrawal charge and a market value adjustment may apply. An early withdrawal charge will reduce the account value. A market value adjustment may increase or reduce the account value.
S&P 500 and FIA returns and account values since 2000
|IRA invested in S&P 500 stocks||FIA allocated to S&P 500 indexed strategy with 6% cap|
|Year||Return||Account value||Return||Account value|
The annualized rate of return is the rate of return that the indexed strategy would have to earn each year in order to achieve the results shown.
Talk to your financial professional about a solution that can provide growth potential and downside protection throughout your years in retirement.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Annuity Investors® Life and Great American Life®. Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Annuity Investors Life and Great American Life. Annuity Investors Life and Great American Life annuity products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties makes any representation regarding the advisability of purchasing said products nor do they have any liability for any errors, omissions or interruptions of the S&P 500 Index.
When you buy a fixed-indexed annuity, you own an insurance contract. You are not buying shares of any stock or index. You cannot invest directly in the S&P 500 Index.
This is a summary of some features of a fixed-indexed product. Great American Life and Annuity Investors Life are not investment advisers and the information provided in this document is not investment advice. You should consult your investment professional for advice based on your personal circumstances and financial situation.
All guarantees based on the claims-paying ability of the issuing insurance company. Products issued by Great American Life Insurance Company® and Annuity Investors Life Insurance Company®, members of Great American Insurance Group, Cincinnati, OH.