A. In today’s interest rate environment, you may want to consider allocating a portion of your fixed income investments to the Index Annuity, because this powerful accumulation solution has the potential to offer you more growth than traditional fixed income vehicles like CDs and bonds, while guaranteeing your principal against loss in down markets.
Below is a Power 5 Protector Index Annuity brochure from AIG, it shows that a diversified portfolio of 60% stocks and 40% index annuities could have stabilized returns and increased performance by 0.22% for the overall period and by 1.03% in weak bond environments from 1927-2016.
In addition to the above benefits, it also helps for people who need income earlier, as it provides access to your money without a withdrawal charge after 5 years.