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Study Finds Fixed Indexed Annuity Returns Attractive and Consistent

A recent study released by the Wharton School of the University of Pennsylvania indicates that fixed indexed annuity returns are not only much more consistent than S&P 500 index returns, but are quite attractive as well.

The study examines five-year annualized returns from 1997 to 2009, calculating industry average annuity returns based on actual returns credited by insurance carriers that offer fixed indexed annuities.

S&P 500 index returns, including dividends, are regarded as the premier measure of U.S. stock market performance. All periods studied ran from September 30 of the beginning year to September 30 of the fifth year, except for the 1997-2002 period which used a January 2 date.

The industry average annuity return exceeded 4% in all eight of the five-year periods examined. In contrast, only three of the annualized S&P 500 returns exceeded 4%, while in four of the periods, the S&P 500 index had a negative return.

Perhaps not surprisingly, the study noted that sales of fixed indexed annuities have climbed steadily since their introduction in the mid-1990’s. Recent sales levels have consistently exceeded $25 billion per year annually.
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Click here to access the study.
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  • Understanding Annuity Liquidity Features
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  • Why Fixed Indexed Annuities Have Caps
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​Bob Lindquist
Phone: 913.814.9600

bob@boblindquistkc.com
Safe Retirement Strategies
​
8900 Indian Creek Parkway
​Building 6 Suite 250

Overland Park, KS 66210

*Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.

This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation.

​Licensed Insurance Professional. Respond and learn how insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
16045 - 2016/8/23 | Privacy Policy
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