Idea One: Consider a Fixed Index Annuity. These contracts are designed to give investors exposure to increases in stock market values, in a way which protects them from losses during downturns. This is possible because they are issued by insurance companies, who have the legal authority to make financial guarantees. FIAs also have lots of […]
Category: Problem/ Solution
Scared of Downturns
Idea One: Avoid downturns by getting out of stocks and into something completely uncorrelated to the market, like a Life Settlement contract. Since these are private transactions that do not trade on an exchange, they are not subject to the value fluctuations seen in those markets. The cash flow is not based on an external […]
Low Interest Rates
Idea One: Asset-Backed notes can pay higher interest than bonds. Bonds are a form of project or operations financing for businesses and governments. The goal for bond issuers is to use capital for as low a fee as possible. That fee, the interest rate, is what investors earn. At this point in history, there is […]
Not Enough Income
Idea One: Fixed Index Annuities (FIAs) often have optional “income riders” which can increase the number of dollars paid out over the life of the annuity, in some situations. Annuities by their basic structure are designed to provide lots of options for structuring a specific stream of income over time. But with income riders, additional […]