Good retirement income planning involves adjusting to circumstances and evaluating innovative products. Consider an FIA to manage downside risk.
Just like other types of annuities, you purchase an FIA from an insurance company. It offers the tax-deferral benefits of annuities and, similar to new forms of investment vehicles like buffered ETFs, it provides downside protection against returns along with upside capture of a portion of positive returns. I asked ChatGPT about FIAs, and it defines them as: “A type of annuity contract that offers a guaranteed minimum interest rate combined with the opportunity to earn additional interest based on the performance of a specific financial market index, such as the S&P 500.”
