Renowned Economist Roger Ibbotson Unveils New Research Indicating Fixed Indexed Annuities May Outperform Bonds Over the Next Decade
Today,
"What financial advisors should acknowledge is the immense impact that shifting market conditions, longer life expectancies, and uncertainties surrounding the future of
"Conventional wisdom has most investors de-risking their portfolios by allocating more heavily to bonds as they approach retirement," continued
In collaboration with Annexus, the researchers utilized S&P 500® Index dynamic participation rates to simulate FIA performance over the past 90 years and presented the results in similar fashion to
- Uncapped FIAs would have outperformed bonds on an annualized basis for the past 90 years.
- It is highly unlikely bond investors will realize as high a return from capital gains in the coming 10 years as they have realized in the past 10 years. In fact, if rates rise, capital gains in the future will be negative (capital losses).
- Uncapped FIAs offer a more tailored risk profile than bonds, capturing a portion of the growth offered by large-cap stocks, while lowering overall market risk.
"This is the single most important body of work I have seen in my 25 years of working in this industry, and the first to validate Fixed Indexed Annuities as an asset class," said
More detailed findings, as well as a full methodology, can be found in the
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About Annexus
Annexus designs solutions to help Americans grow and protect their retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. In close collaboration with design partner Genesis Financial, Annexus has forged relationships with many of the industry's leading insurance carriers and the world's largest investment banks. Find out more about Annexus and our products at www.annexus.com.
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