Stock Market Indexes in Index Annuities Compared
In this guide, I will go over the stock market indexes that are available inside of a fixed index annuity as well as the crediting strategies and allocation options. We’ve ran historical hypothetical back-tests and determined which stock market indexes have performed the best historically.
Over the next couple of minutes, you’ll learn exactly what the historical average annual rate of return is for the top indexes overall and by annuity company.
Allianz's Life
| Allianz Best Performing Stock Market Index Crediting Strategies | Recent | Best | Worst |
|---|---|---|---|
| Allianz Core Income 7 Annuity 2-Year Bloomberg US Dynamic Balance II ER PTP Participation 7 surrender yrs Rider fee: 1.25% | 7.83% | 9.10% | 5.84% |
| Allianz Core Income 7 Annuity 1-Year Bloomberg US Dynamic Balance II ER PTP Participation 7 surrender yrs Rider fee: 1.25% | 6.30% | 7.09% | 4.84% |
| Allianz 360 Annuity 2-Year Bloomberg US Dynamic Balance II ER PTP Participation 10 surrender yrs Rider fee: 1.3% | 6.09% | 7.09% | 4.53% |
| Allianz Core Income 7 Annuity 1-Year Bloomberg US Dynamic Balance II PTP Spread 7 surrender yrs Rider fee: 1.25% | 5.24% | 5.96% | 3.96% |
| Allianz 360 Annuity 2-Year PIMCO Tactical Balanced ER PTP Participation Rate 10 surrender yrs Rider fee: 1.3% | 4.90% | 6.00% | 4.33% |
| Allianz Core Income 7 Annuity 1-Year Bloomberg US Dynamic Balance II PTP Cap 7 surrender yrs Rider fee: 1.25% | 4.76% | 5.45% | 4.69% |
| Allianz 360 Annuity 1-Year Bloomberg US Dynamic Balance II PTP Spread 10 surrender yrs Rider fee: 1.3% | 4.57% | 5.20% | 3.29% |
| Allianz 360 Annuity 1-Year S&P 500 PT P Monthly Sum Cap 10 surrender yrs Rider fee: 1.3% Averaging: Monthly sum | 4.53% | 4.53% | 2.23% |
| Allianz 360 Annuity 1-Year Bloomberg US Dynamic Balance II ER PTP Participation 10 surrender yrs Rider fee: 1.3% | 4.43% | 4.98% | 3.39% |
| Allianz 360 Annuity 1-Year Nasdaq-100 PT P Monthly Sum Cap 10 surrender yrs Rider fee: 1.3% Averaging: Monthly sum | 4.24% | 4.58% | 2.26% |
Great American
| Annuity, Crediting Strategy & Index | Recent | Best | Worst |
|---|---|---|---|
| Index Protector 7 Non-MVA 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.54% | 5.65% | 3.94% |
| AssuranceSelect 7 Plus 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.54% | 5.65% | 3.94% |
| AssuranceSelect 7 Plus 1-Year S&P U.S. Retiree Spending TR PTP Participation Rate 7 surrender yrs Reset: Annual S&P US Retiree Spending (T R) | 4.06% | 5.62% | 3.95% |
| Index Protector 7 Non-MVA 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.17% | 5.19% | 3.61% |
| American Legend 7 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.17% | 5.19% | 3.61% |
| AssuranceSelect 7 Plus 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.17% | 5.19% | 3.61% |
| American Legend 7 1-Year S&P 500 PT P Monthly Sum Cap 7 surrender yrs Averaging: Monthly sum Reset: Annual S&P 500® Index | 5.18% | 5.18% | 2.42% |
| American Legend 7 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 3.80% | 4.72% | 3.28% |
| Index Protector 7 Non-MVA 1-Year S&P 500 PT P Cap 7 surrender yrs Reset: Annual S&P 500® Index | 3.78% | 4.38% | 3.05% |
| American Legend 7 1-Year S&P 500 PT P Monthly Sum Cap 7 surrender yrs Averaging: Monthly sum Reset: Annual S&P 500® Index | 4.35% | 4.35% | 2.13% |
AIG
| AIG Best Performing Stock Market Indexes | Recent | Best | Worst |
|---|---|---|---|
| Power Index Preferred 1-Year ML Strategic Balance PTP Participation Rate | 5.78% | 6.95% | 4.74% |
| Power Select Plus Income – Lifetime Income Plus Multiplier Flex 2-Year ML Strategic Balanced PTP Spread A | 5.66% | 7.21% | 4.34% |
| Power Select Builder 1-Year ML Strategic Balanced PTP Participation Rate | 5.58% | 6.71% | 4.58% |
| Power 10 Protector 1-Year ML Strategic Balanced PTP Participation Rate | 5.58% | 6.71% | 4.58% |
| Power Select Plus Income – Lifetime Income Plus Multiplier Flex 2-Year AB All Market PTP Participation Rate with Spread | 5.39% | 6.79% | 4.71% |
| Power Select Builder 2-Year AB All Market PTP Participation Rate with Spread | 5.39% | 6.79% | 4.71% |
| Power 7 Protector 1-Year ML Strategic Balanced PTP Participation Rate | 5.26% | 6.32% | 4.32% |
| Power Index Preferred Plus Income with Lifetime Income Plus Multiplier Flex 1-Year ML Strategic Balance PTP Participation Rate | 5.26% | 6.32% | 4.32% |
Athene
| Athene Best Stock Market Index Options and Crediting Options | Best | Recent | Worst |
|---|---|---|---|
| Athene Performance Elite 7 2-Year Nasdaq FC PT P Participation Rate | 5.99% | 6.41% | 1.91% |
| Athene Performance Elite 7 Plus 2-Year Nasdaq FC PT P Participation Rate Bonus: 5% Rider fee: 0.95% | 5.99% | 6.41% | 1.91% |
| Athene Performance Elite 10 2-Year Nasdaq FC PT P Participation Rate 10 surrender yrs Bonus: 2% | 5.99% | 6.41% | 1.91% |
| Athene Performance Elite 10 Plus 2-Year Nasdaq FC PT P Participation Rate Bonus: 8% Rider fee: 0.95% | 5.99% | 6.41% | 1.91% |
| Ascent Pro 10 2-Year Nasdaq FC PT P Participation Rate 10 surrender yrs Rider fee: 1% | 5.99% | 6.41% | 1.91% |
North American
| North American Best Performing Stock Index and Credting Methods | Recent | Best | Worst |
|---|---|---|---|
| NAC VersaChoice 10 2-Year Fidelity Multifactor Yield 5% ER PTP Participation R 10 surrender yrs Reset: Biennial Fidelity Multi Factor Yield 5% (ER) | 4.77% | 5.65% | 3.23% |
| NAC VersaChoice 10 2-Year S&P 500 MARC 5% ER PTP Participation Rate 10 surrender yrs Reset: Biennial S&P 500 MARC 5% (ER) | 4.01% | 4.82% | 3.82% |
| NAC VersaChoice 10 1-Year S&P 500 LV DRC 5% TR PTP Spread 10 surrender yrs Reset: Annual S&P 500 Low Volatility DRC 5% (T R) | 3.92% | 5.07% | 2.74% |
| NAC IncomeChoice 10 1-Year S&P 500 MARC 5% ER PTP Spread 10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER) | 3.9% | 4.41% | 3.53% |
| NAC VersaChoice 10 1-Year Fidelity Multifactor Yield 5% ER PTP Participation R 10 surrender yrs Reset: Annual Fidelity Multi-Factor Yield 5% (ER) | 3.76% | 4.21% | 2.57% |
| NAC VersaChoice 10 2-Year Fidelity Multifactor Yield 5% ER PTP Participation R 10 surrender yrs Reset: Biennial Fidelity Multi Factor Yield 5% (ER) | 3.61% | 4.27% | 2.44% |
| NAC VersaChoice 10 1-Year S&P 500 MARC 5% ER PTP Participation Rate 10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER) | 3.6% | 3.91% | 3.38% |
| NAC IncomeChoice 10 1-Year S&P 500 MARC 5% ER PTP Spread 10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER) | 3.55% | 4.07% | 3.18% |
Best Overall Indexes
| Stock Market Index Allocation Option | Best | Recent | Worst |
|---|---|---|---|
| F&G Power Accumulator 7 2-Year Balanced Asset 10 PTP Participation Rate with Spread | 10.78% | 9.27% | 4.99% |
| F&G Power Accumulator 10 2-Year Balanced Asset 10 PTP Participation Rate with Spread | 10.78% | 9.27% | 4.99% |
| SILAC Denali 10 Denali 10 (Most States) 1-Year Credit Suisse RavenPack PTP Participation Rate | 9.74% | 8.84% | 7.58% |
| American Equity AssetShield 10 with Enhancements 2-Year SG Global Sentiment PTP Participation Rate | 8.32% | 10.83% | 7.49% |
| American Equity Asset Shield 10 with Enhancements 2-Year CS Tech Edge PT P Participation Rate | 8.27% | 9.01% | 5.49% |
| SILAC Denali 10 (Most States) 1-Year Credit Suisse RavenPack Boost Spread | 8.15% | 8.98% | 7.23% |
| SILAC Denali 10 (Most States) 1-Year Barclays Atlas 5 PT P Participation Rate | 8.13% | 9.73% | 7.21% |
| Atlantic Coast Life Accumulation Protector Plus 3-Year Credit Suisse PT P Participation Rate | 7.85% | 8.34% | 6.73% |
Stock Market Index Options by Annuity Company
Indexes Available in Allianz Life Index Annuity Contracts
Allianz offers seven different stock market index options and three index crediting methods.
Allianz Available Crediting Methods:
- Annual Point to Point
- 2 Year Point to Point
Allianz Available Crediting Components
- Cap
- Participation Rate
- Spread
BlackRock iBLD Claria® Index
Ticker Symbol: IBLDCLRA
Point to Point with a Participation Rate
The BlackRock Claria® Index is designed to provide exposure to a diversified global equity portfolio which targets volatility at a predetermined level. The index uses a dynamic process whereby it is rebalanced each day to adjust
allocations between the equity and fixed income baskets.
Using historical 20 and 40-day volatility measures, index capital moves from the equity basket to the fixed income basket or back as historical volatility deviates from the target. The index is constructed from iShares ETFs.
Bloomberg U.S. Dynamic Balance Index II
Ticker Symbol: BXIIUDB2
Point to Point with a Participation Rate
The Bloomberg US Dynamic Balance Index II reflects the performance of an index strategy that uses the S&P 500® Index and the Bloomberg Barclays US Aggregate RBI® Series 1 Index. The S&P 500® Index is a well-established benchmark for U.S. equity markets.
The Bloomberg Barclays US Aggregate RBI° Series 1 Index is designed to track the Bloomberg Barclays US Aggregate Bond Index —a well-established benchmark for the U.S. bond markets.
Every day, the Bloomberg US Dynamic Balance Index II (BXIIUDB2) dynamically allocates between the S&P 500® Index and the Bloomberg Barclays US Aggregate RBI® Series 1 Index based on their historical realized volatility (a measure of the magnitude of daily movements, regardless of direction, of an index).
Allianz Life's Best Annuities Based on Returns
| Allianz Best Performing Stock Market Index Crediting Strategies | Recent | Best | Worst |
|---|---|---|---|
| Allianz Core Income 7 Annuity 2-Year Bloomberg US Dynamic Balance II ER PTP Participation 7 surrender yrs Rider fee: 1.25% | 7.83% | 9.10% | 5.84% |
| Allianz Core Income 7 Annuity 1-Year Bloomberg US Dynamic Balance II ER PTP Participation 7 surrender yrs Rider fee: 1.25% | 6.30% | 7.09% | 4.84% |
| Allianz 360 Annuity 2-Year Bloomberg US Dynamic Balance II ER PTP Participation 10 surrender yrs Rider fee: 1.3% | 6.09% | 7.09% | 4.53% |
| Allianz Core Income 7 Annuity 1-Year Bloomberg US Dynamic Balance II PTP Spread 7 surrender yrs Rider fee: 1.25% | 5.24% | 5.96% | 3.96% |
| Allianz 360 Annuity 2-Year PIMCO Tactical Balanced ER PTP Participation Rate 10 surrender yrs Rider fee: 1.3% | 4.90% | 6.00% | 4.33% |
| Allianz Core Income 7 Annuity 1-Year Bloomberg US Dynamic Balance II PTP Cap 7 surrender yrs Rider fee: 1.25% | 4.76% | 5.45% | 4.69% |
| Allianz 360 Annuity 1-Year Bloomberg US Dynamic Balance II PTP Spread 10 surrender yrs Rider fee: 1.3% | 4.57% | 5.20% | 3.29% |
| Allianz 360 Annuity 1-Year S&P 500 PT P Monthly Sum Cap 10 surrender yrs Rider fee: 1.3% Averaging: Monthly sum | 4.53% | 4.53% | 2.23% |
| Allianz 360 Annuity 1-Year Bloomberg US Dynamic Balance II ER PTP Participation 10 surrender yrs Rider fee: 1.3% | 4.43% | 4.98% | 3.39% |
| Allianz 360 Annuity 1-Year Nasdaq-100 PT P Monthly Sum Cap 10 surrender yrs Rider fee: 1.3% Averaging: Monthly sum | 4.24% | 4.58% | 2.26% |
Great American Life Insurance Co. Indexes
Great American offers five different stock market indexes and two separate index crediting components.
GALIC Available Crediting Methods:
- Annual Point to Point
Available Crediting Components
- Cap
- Participation Rate
Great American Stock Market Index Options:
- S&P 500 – Annual Point to Point with a Cap
- iShares U.S. Real Estate ETF – Annual Point to Point with a Cap
- SPDR Gold Index ETF – Annual Point to Point with a Cap
- S&P U.S. Retirees Spending Index – Annual point to Point with a Participation Rate
- S&P 500 Risk Control 10% Index – Annual point to Point with a Participation Rate
Great American's Best Performing Stock Market Index and Crediting Method
| Annuity, Crediting Strategy & Index | Recent | Best | Worst |
|---|---|---|---|
| Index Protector 7 Non-MVA 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.54% | 5.65% | 3.94% |
| AssuranceSelect 7 Plus 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.54% | 5.65% | 3.94% |
| AssuranceSelect 7 Plus 1-Year S&P U.S. Retiree Spending TR PTP Participation Rate 7 surrender yrs Reset: Annual S&P US Retiree Spending (T R) | 4.06% | 5.62% | 3.95% |
| Index Protector 7 Non-MVA 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.17% | 5.19% | 3.61% |
| American Legend 7 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.17% | 5.19% | 3.61% |
| AssuranceSelect 7 Plus 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 4.17% | 5.19% | 3.61% |
| American Legend 7 1-Year S&P 500 PT P Monthly Sum Cap 7 surrender yrs Averaging: Monthly sum Reset: Annual S&P 500® Index | 5.18% | 5.18% | 2.42% |
| American Legend 7 1-Year S&P 500 Average DRC 10% PR PTP Participation Rate 7 surrender yrs Reset: Annual S&P 500 Average DRC 10% (PR) | 3.80% | 4.72% | 3.28% |
| Index Protector 7 Non-MVA 1-Year S&P 500 PT P Cap 7 surrender yrs Reset: Annual S&P 500® Index | 3.78% | 4.38% | 3.05% |
| American Legend 7 1-Year S&P 500 PT P Monthly Sum Cap 7 surrender yrs Averaging: Monthly sum Reset: Annual S&P 500® Index | 4.35% | 4.35% | 2.13% |
AIG Best Stock Market Indexes
AIG offers 7 different stock market indexes and three separate index crediting strategies.
AIG Available Crediting Methods:
- 2 Year Point to Point
- Annual Point to Point
AIG Available Crediting Components
- Cap
- Participation Rate
- Spread
AIG Available Stock Market Indexes:
- S&P 500 – Annual Point to Point with a Cap
- Merrill Lynch Strategic Balanced Index – Annual Point to Point with a Spread
- AQR DynamiQ Allocation Index – Annual Point to Point with a Spread
- Russell 2000 Index – Annual Point to Point with a Cap
- PIMCO Global Optima Index – Annual Point to Point with a Participation Rate
- iShares US MSCI EAFE ETF – Annual Point to Point with a Cap
AIG's Best Performing Stock Market Index and Allocation Option
| AIG Best Performing Stock Market Indexes | Recent | Best | Worst |
|---|---|---|---|
| Power Index Preferred 1-Year ML Strategic Balance PTP Participation Rate | 5.78% | 6.95% | 4.74% |
| Power Select Plus Income - Lifetime Income Plus Multiplier Flex 2-Year ML Strategic Balanced PTP Spread A | 5.66% | 7.21% | 4.34% |
| Power Select Builder 1-Year ML Strategic Balanced PTP Participation Rate | 5.58% | 6.71% | 4.58% |
| Power 10 Protector 1-Year ML Strategic Balanced PTP Participation Rate | 5.58% | 6.71% | 4.58% |
| Power Select Plus Income - Lifetime Income Plus Multiplier Flex 2-Year AB All Market PTP Participation Rate with Spread | 5.39% | 6.79% | 4.71% |
| Power Select Builder 2-Year AB All Market PTP Participation Rate with Spread | 5.39% | 6.79% | 4.71% |
| Power 7 Protector 1-Year ML Strategic Balanced PTP Participation Rate | 5.26% | 6.32% | 4.32% |
| Power Index Preferred Plus Income with Lifetime Income Plus Multiplier Flex 1-Year ML Strategic Balance PTP Participation Rate | 5.26% | 6.32% | 4.32% |
Indexes Available in Athene Annuities
Athene offers five different stock market index options and three separate index crediting strategies.
Athene Crediting Strategies
- Annual Point to Point
- 2 Year Point to Point
Athene Crediting Methods:
- Cap
- Participation Rate
S&P 500 Ticker Symbol: SPX
S&P 500 Daily Risk Control 2 8%TM Index (Total Return) Ticker Symbol: SPX8UN2
The S&P 500 Daily Risk Control 2 8% Index strives to deliver stable, risk-adjusted returns in all environments. Represents a portfolio of the S&P 500® plus a liquid bond index. This volatility control index targets a volatility level of 8%. Rebalanced daily.
Nasdaq FC Index Ticker Symbol: BOFANFCC
Point to Point with a Participation Rate
The Nasdaq FC utilizes Patent-pending FC technology is designed to adapt to constantly changing economic conditions more quickly and efficiently than traditional volatility control mechanisms.
The Nasdaq FC Index applies this capability to the stocks in the Nasdaq-100. It aims to increase returns by rebalancing throughout the day to manage exposure to the Nasdaq-100.
The Nasdaq FC Index strives to realize growth potential by targeting 12.5% annualized volatility.
BNP Paribas Multi Asset Diversified 5 Index Ticker Symbol: BNPIMAD5
Point to Point with a Participation Rate
The BNPIMAD5 is a dynamic and diversified index from a global banking powerhouse.
Eight underlying components including equity futures, bond futures, and commodity indices provide exposure to a range of asset classes across three geographic regions. A volatility feature targets a volatility level of 5%. Rebalanced daily.
AI Powered US Equity Index Ticker Symbol: AIPEX
Point to Point with a Participation Rate
AiPex is a smart large-cap equity strategy built by IBM Watson.®
Each month, AiPEX selects approximately 250 equity stocks from the 1,000 largest U.S. companies using a scoring system that evaluates financial health and management strength as well as market sentiment, economic and geopolitical risks.
It then weights each company, assigning the largest weight to those with the highest scores.
Athene's Best Performing Stock Market Index Options
| Athene Best Stock Market Index Options and Crediting Options | Best | Recent | Worst |
|---|---|---|---|
| Athene Performance Elite 7 2-Year Nasdaq FC PT P Participation Rate | 5.99% | 6.41% | 1.91% |
| Athene Performance Elite 7 Plus 2-Year Nasdaq FC PT P Participation Rate Bonus: 5% Rider fee: 0.95% | 5.99% | 6.41% | 1.91% |
| Athene Performance Elite 10 2-Year Nasdaq FC PT P Participation Rate 10 surrender yrs Bonus: 2% | 5.99% | 6.41% | 1.91% |
| Athene Performance Elite 10 Plus 2-Year Nasdaq FC PT P Participation Rate Bonus: 8% Rider fee: 0.95% | 5.99% | 6.41% | 1.91% |
| Ascent Pro 10 2-Year Nasdaq FC PT P Participation Rate 10 surrender yrs Rider fee: 1% | 5.99% | 6.41% | 1.91% |
North American Company (NAC) Indexes
North American offers seven stock market index options and two crediting methods in its index annuities.
Crediting Strategies
- Annual Point to Point
- 2 Year Point to Point
North American Crediting Methods:
- Cap
- Participation Rate
North American Stock Market Indexes Options:
- S&P 500 (Ticker: SPX) – Point to Point with a Cap
- S&P 500 Daily Risk Control 2 8%TM Index (Ticker: SPX8UN2) –Point to Point with a Cap
- S&P 500 Daily Risk Control 5% Index – Point to Point with a Cap
- Dow Jones Industrial Average (DJIA) – Point to Point with a Cap
- Fidelity Multifactor Yield Index 5% ER (Ticker: FIDMFYDN)- Point to Point with a Participation Rate
- S&P MARC 5% ER (Ticker: SPMARC5P) – Point to Point with a Participation Rate
- NASDAQ 100 Index – Point to Point with a Cap
Fidelity Multifactor Yield Index 5% ER
Ticker Symbol: FIDMFYDN
Point to Point with a Participation Rate
A rules-based index that blends six equity factor indices with U.S. Treasuries, and uses a dynamic allocation approach that seeks to reduce volatility to deliver more consistent returns over time.
Fidelity boasts one of the largest research teams in the industry, with more than 350 global equity, fixed income, and asset allocation research professionals.
S&P 500 Marc 5% ER
Ticker Symbol: SPMARC5P
- Point to Point with a Cap Rate
- Point to Point with a Spread
The S&P Multi-Asset Risk Control 5% Excess Return Index (S&P MARC 5% ER) strives to create more stable index performance through diversification, an excess return methodology, and volatility management.
North American's Best Performing Stock Market Indexes
| North American Best Performing Stock Index and Credting Methods | Recent | Best | Worst |
|---|---|---|---|
| NAC VersaChoice 10 2-Year Fidelity Multifactor Yield 5% ER PTP Participation R 10 surrender yrs Reset: Biennial Fidelity Multi Factor Yield 5% (ER) | 4.77% | 5.65% | 3.23% |
| NAC VersaChoice 10 2-Year S&P 500 MARC 5% ER PTP Participation Rate 10 surrender yrs Reset: Biennial S&P 500 MARC 5% (ER) | 4.01% | 4.82% | 3.82% |
| NAC VersaChoice 10 1-Year S&P 500 LV DRC 5% TR PTP Spread 10 surrender yrs Reset: Annual S&P 500 Low Volatility DRC 5% (T R) | 3.92% | 5.07% | 2.74% |
| NAC IncomeChoice 10 1-Year S&P 500 MARC 5% ER PTP Spread 10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER) | 3.9% | 4.41% | 3.53% |
| NAC VersaChoice 10 1-Year Fidelity Multifactor Yield 5% ER PTP Participation R 10 surrender yrs Reset: Annual Fidelity Multi-Factor Yield 5% (ER) | 3.76% | 4.21% | 2.57% |
| NAC VersaChoice 10 2-Year Fidelity Multifactor Yield 5% ER PTP Participation R 10 surrender yrs Reset: Biennial Fidelity Multi Factor Yield 5% (ER) | 3.61% | 4.27% | 2.44% |
| NAC VersaChoice 10 1-Year S&P 500 MARC 5% ER PTP Participation Rate 10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER) | 3.6% | 3.91% | 3.38% |
| NAC IncomeChoice 10 1-Year S&P 500 MARC 5% ER PTP Spread 10 surrender yrs Reset: Annual S&P 500 MARC 5% (ER) | 3.55% | 4.07% | 3.18% |
Best Stock Market Indexes & Allocation Options
How often can you reallocate index strategies?
You may reallocate available funds at the end of each crediting period on your contract anniversary. You have 30 days to submit a re-allocation form – if you do not, your allocations will remain the same as the previous year.
Are fixed index annuities a good investment?
It is important to note that a fixed index annuity is an insurance contract issued by an insurance company and is not a security. As such, they will not generate equity-like returns. They are a good retirement savings vehicle that provides a safe and steady way to grow your retirement savings.
Can You Loose Money in a Fixed Index Annuity?
You can not lose money in an indexed annuity due to a potential market downturn.
Does a Fixed Index Annuity have any fees?
Fixed Index Annuities do not have any fees in general; however, there are optional income riders, long term care riders, and death benefit riders that can be added to an index annuity for a fee.
What are the disadvantages of a fixed index annuity?
Gains are limited by a crediting method or “limiting factor”, index annuity contracts can be complex, contracts vary greatly from insurance company to company, highly customizable, surrender penalties for withdrawals above the annual free withdrawal provision, pre 591/2 tax penalties, and crediting factors can change on the contract anniversary date.
What is an Uncapped Index Annuity?
An Uncapped Fixed Index Annuity refers to an indexed annuity with a crediting method that does not cap the interest your account can be credited in any given year.
The below table lists the stock market index, annuity, and crediting strategies that have the best performance based on hypothetical backtesting.
The “Best” column shows the average rate of return for the
- best 10 year period
- most recent 10 year period, and
- worst 10-year period
Our 10 Best Fixed Index Annuity Companies List is also a good resource to help you narrow down the best which index annuity is best for you.
| Stock Market Index Allocation Option | Best | Recent | Worst |
|---|---|---|---|
| F&G Power Accumulator 7 2-Year Balanced Asset 10 PTP Participation Rate with Spread | 10.78% | 9.27% | 4.99% |
| F&G Power Accumulator 10 2-Year Balanced Asset 10 PTP Participation Rate with Spread | 10.78% | 9.27% | 4.99% |
| SILAC Denali 10 Denali 10 (Most States) 1-Year Credit Suisse RavenPack PTP Participation Rate | 9.74% | 8.84% | 7.58% |
| American Equity AssetShield 10 with Enhancements 2-Year SG Global Sentiment PTP Participation Rate | 8.32% | 10.83% | 7.49% |
| American Equity Asset Shield 10 with Enhancements 2-Year CS Tech Edge PT P Participation Rate | 8.27% | 9.01% | 5.49% |
| SILAC Denali 10 (Most States) 1-Year Credit Suisse RavenPack Boost Spread | 8.15% | 8.98% | 7.23% |
| SILAC Denali 10 (Most States) 1-Year Barclays Atlas 5 PT P Participation Rate | 8.13% | 9.73% | 7.21% |
| Atlantic Coast Life Accumulation Protector Plus 3-Year Credit Suisse PT P Participation Rate | 7.85% | 8.34% | 6.73% |
Index Annuity Crediting Methods Explained
Annual Point-to-Point Index Annuity Crediting Method
Annual point to point uses the stock market index value from only two points in time making it simple and straightforward to calculate.
Subtract the index value at the end of the year from the index value at the beginning of the year.
Fixed Index Annuity Example:
#1. 107,000(ending value) minus 100,000(beginning value) = 7,000 positive change in index value.
#2. 7,000 (index value change) divided by 100,000(beginning index value) = 7% stock market index performance.
#3. A cap, spread or participation rate is applied to the indexes performance to determine how much interest you earn that year.
Lets assume the rates for the 3 fixed index annuity crediting strategies are:
- Spread – 2.00%
- Cap – 5.00%
- Participation Rate – 75%
- Cap = 5% Interest credited (100% of index performance up to the cap)
- Spread = 5% Interest credited (index performance minus the spread)
- Participation Rate = 5.25% Interest Credited (index performance)
About Hypothetical Historical Depictions
Some of the hypothetical index performance on this page is for indices that were not in existence for the entire time period during which hypothetical projections were made.
All information presented before this launch date is hypothetical (back-tested), and back-tested performance is not actual performance.
The back-tested performance is based on the methodology and mechanics of the index retroactively applied to historical market data, as if the index had previously existed, to generate hypothetical performance during the periods of time depicted.
This back-tested performance for any constituent that makes up the index may have actual performance and history, and it will also have back-tested data for any period before its inception.
Back-tested performance may not be a reliable indicator of future results. Prospective application of the methodology and mechanics of the index may not result in performance commensurate with the back-tested returns shown.
