WHAT IS THE DIFFERENCE BETWEEN FIAs AND EQUITY INVESTING?

FIAs and equity investing can both play a role in your preparation for retirement. However, FIAs are more conservative and can help protect you from market-based losses.

scroll down

EQUITY INVESTMENTS

  • Invests directly in the stock market
  • Offers higher growth potential
  • Exposed to risk of negative market performance

FIXED INDEX ANNUITIES

  • Insurance contract that is not invested in the stock market
  • Uses interest crediting methods that may be linked to an equity index
  • Can benefit from upward movement of a linked index
  • Provides protection from negative index performance
WHERE DO FIAs FALL WITHIN THE RISK / RETURN SPECTRUM?
Savings Accounts
Certificates of Deposits
Money Market Accounts
Fixed Annuities
FIXED INDEX ANNUITIES
Bonds
Variable Annuities
Equity Mutal Funds
Stocks
ENLARGE IMAGE

What is a fixed index annuity?

FIND OUT

Do I have to wait to touch my FIA until retirement?

FIND OUT

 
 
This material is intended to provide educational information regarding the features and mechanics of the product and is intended for use with the general public. It should not be considered, and does not constitute, personalized investment advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It’s not acting in any fiduciary capacity with respect to any contract and/or investment.


Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product’s benefit rules, as applicable.

A fixed index annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed index annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index.

There are a multitude of different products that may be accessed for retirement needs. For example, stocks, bonds, mutual funds and variable annuities are securities and have different risk/reward characteristics, liquidity properties and tax consequences, particularly when compared to products such as CDs, savings accounts, money market accounts and fixed annuities. Certificate of Deposits (CDs) are bank products that are FDIC insured. Money Market funds are securities and are not FDIC insured and although these funds seek to preserve the value of an investment at $1.00 per share, there is no guarantee they will maintain this value.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your tax or legal counsel for advice.

The issuing insurance company is not an investment advisor nor registered as such with the SEC or any state securities regulatory authority. It is not acting in any fiduciary capacity with respect to your investment. This information does not constitute personalized investment advice or financial planning advice.

Taxable distributions (and certain deemed distributions) are subject to ordinary income taxes, and if made prior to 59½, may also be subject to a 10% federal income tax penalty. Early withdrawal charges and market value adjustments may also apply.

Fixed index annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana.

Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations.

2195586.1