New fixed index annuities no longer impose caps on market growth

Dan Weinbaum
July 10, 2018 - 12:11 pm

Fixed index annuities have always tracked the growth of major stock market indexes like the S&P 500, Nasdaq and the NYSE but the insurance companies used to restrict growth by capping returns at 2 or 3 percent of what the market delivered.

During his interview with KMBZ's Dan Weinbaum on the Kansas City Morning News, Bob Lindquist, founder of Safe Retirement Strategies said investors are under the false impression that their opportunities for capital gains in fixed index annuities are extremely limited.

“Years ago when these plans first began in the middle 1990’s people had to deal with 2% and 3% caps on growth. So if the market increased by 10% or 12% you were only able to capture a small percentage of that growth. People didn’t like that,” said Lindquist.

Well that’s simply not the case anymore. Those caps have been completely taken away in today’s plans. Now, just like in the traditional investing marketplace, the opportunity for growth is available to investors inside a safe vehicle.

When the market is doing well you fully participate in the upside growth but when the market drops you’re fully protected from the downside.

“We give you an opportunity to participate in 100% of the growth of an index and you never have to worry about losing your life savings,” he said. “I call this the total peace of mind retirement plan.”

The reason why people shy away from fixed index annuities is because they aren’t aware of the new benefits. They assume they will get better performance in a mutual fund or exchange traded fund because they think these vehicles still limit investors on the upside.

When perception catches up with reality, the stigma will fade and the popularity of these investment vehicles for retirement savings and lifetime income will skyrocket.

For your introductory guide to fixed index annuities call Bob at 913-814-9600 or visit

The opinions expressed in this sponsored blog article are those of Safe Retirement Strategies and Bob Lindquist and do not necessarily reflect the views of Entercom, its employees or its advertisers.

Comments ()