The Benefits of Fixed Indexed Annuities in a Volatile Market

Market volatility can be unsettling, especially when your retirement savings are on the line. The unpredictability of market swings often leaves investors searching for ways to protect their assets while still achieving growth. Fixed Indexed Annuities (FIAs) offer a solution by combining the benefits of principal protection, growth potential, and tax-deferred savings. Here’s how FIAs can provide stability and security during uncertain times.

1. Principal Protection

One of the standout features of FIAs is their ability to protect your principal. Unlike stocks or mutual funds, the value of your FIA will not decrease due to market downturns in exchange for limits on growth potential. This makes them an attractive option for risk-averse individuals or those nearing retirement who can’t afford to lose their hard-earned savings.

2. Growth Potential Linked to Market Performance

FIAs allow you to benefit from market gains without exposing your money to market losses. Interest is credited based on the performance of a market index, such as the S&P 500. While you are not directly invested in the market and won’t earn dividends, your principal remains safe. You’ll receive a portion of the index’s growth through caps, participation rates, or spreads.

3. Tax-Deferred Savings

FIAs offer tax-deferred growth, meaning you don’t pay taxes on earnings until you withdraw them. This allows your savings to compound more efficiently over time. If you’ve already maximized contributions to other tax-advantaged accounts like IRAs or 401(k)s, a FIA can be a valuable addition to your portfolio.

4. Income Flexibility and Guarantees

FIAs provide flexible options for turning your savings into income. Many FIAs offer optional riders that guarantee lifetime income, helping you address the potential risk of outliving your savings. During volatile markets, having a steady, predictable income source can provide peace of mind.

5. Diversification for a Balanced Portfolio

Including FIAs in your retirement strategy adds a layer of diversification. While other investments may fluctuate with market conditions, FIAs provide stability and potential growth, helping balance the overall risk in your portfolio. This can be especially valuable during market downturns.

6. Protection Against Emotional Investing

Market volatility often leads to emotional decision-making, such as selling assets during a downturn. FIAs help mitigate this risk by providing a stable, predictable growth strategy. With your principal protected and growth linked to a market index, you can avoid the stress of trying to time the market.

Are FIAs Right for You?

FIAs aren’t one-size-fits-all, but they can be a powerful tool for individuals who want:

• Principal protection with growth potential
• Tax-deferred savings
• Guaranteed lifetime income options
• A buffer against market volatility

Consult a financial professional to determine if a FIA fits your financial goals, liquidity needs, and risk tolerance.

Discover the Oceanview Difference

• Financial Strength You Can Trust: Rated “A” (Excellent) by A.M. Best, showcasing our solid financial foundation, providing you with confidence regarding Oceanview’s commitment to meeting obligations.
• Simple, Transparent Retirement Solutions: Straightforward annuity products designed to help you meet your retirement objectives.
• Competitive Rates and Flexibility: Benefit from competitive rates and a variety of durations and crediting strategies.
• Client-Centric Approach: Features such as free withdrawals, nursing home and terminal illness waivers, and full liquidity for beneficiaries upon the annuitant’s death demonstrate our commitment to your financial security and peace of mind. 

Disclaimers

Oceanview’s Single Premium Fixed Indexed Annuity Contract [ICC19 OLA FIA], product riders and state variations. Product features, limitations and availability may vary. Products not available in all states.

Annuities issued by Oceanview Life and Annuity Company, 1331 17th St., Suite 1050, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.

HARBOURVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.

Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals.  Please review the contract for full details.  

A.M. Best Rating as of December 11, 2024, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.

This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such. 

Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.

The IRS may impose a penalty for withdrawals prior to age 59 ½.

Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.

While care was taken in preparing this information and it is considered reliable, contract, application, illustration, and product disclosure language should be relied upon when contrary. The Company reserves the right to correct any typographical errors that may exist.  

Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated.  Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.