Interest rates are still climbing!

We talk a lot about the high-interest rates we are seeing throughout the industry, and because it has been a long time since we have had rates this good, it’s worth the conversation. Additionally, we talk about the safe money in the Multi-Year Guarantee Annuity (MYGA), and the rates keep climbing; how long will that last? Hopefully, for a while yet. But I also want to remind everyone that while we have great rates on the MYGA, remember that we are seeing some of the best rates we have had on the Fixed Index Annuities (FIA). 

The rates and different allocations offered by our different carriers provide many diversifications. Some carriers offer allocations with terms of 2 years, 3 years, or even up to 5 years. But the way everything is up and down right now, going back to the basics has become the easiest way to help understand all the different options.

A performance trigger allocation is one of the most exciting allocations offered by just a handful of carriers. It is based on the S&P 500 annually, and the best thing about this allocation is that if the S&P goes up or does nothing, the customer gets the maximum cap rate. For example, if the performance trigger has a cap rate of 9%, and the S&P doesn’t change or goes up 1%, the customer would get an interest of 9% on the money in that allocation. Income and Accumulation products offer this allocation type.

While it is nice to have the guarantee of never losing money on a MYGA or FIA, wouldn’t it be even nicer to gain (as an example) 9% on your money even if the S & P stays flat or goes up slightly?

Please call or email me if you have questions or want to see some illustrations showing this allocation.