Top 10 Reasons to Own a Fixed Indexed Annuity

Fixed Indexed Annuities (FIAs) are long-term savings tools that protect your principal, offer tax-deferred growth tied to market performance, and can guarantee lifetime income. For business owners, they represent a strategic way to build wealth outside of business operations.

Business Owner Perspective

Fixed Indexed Annuities offer business owners a unique combination of principal protection and growth potential—perfect for creating retirement income that’s independent of business performance. Whether you’re planning your exit strategy or managing excess cash flow, FIAs provide flexibility that aligns with entrepreneurial needs.

Why Business Owners Choose Fixed Indexed Annuities

• Principal Protection - No downside risk even in bad market years
• Growth Potential - Earnings tied to market index performance
• Tax Deferral - Triple compounding effect with tax advantages
• Lifetime Income - Optional riders for guaranteed retirement income

Top 10 Reasons for Business Owners

1. Trust in the Carrier

National Life has been providing financial security since 1848

Business Benefit: Confidence in long-term partnership for retirement planning

2. Start Small

Begin saving with as little as $100/month

Business Benefit: Flexible contribution schedule that adapts to business cash flow

3. No Market Timing Required

Interest based on index performance, not timing decisions

Business Benefit: Business owners can focus on operations, not investment timing

4. Lifetime Income Riders Available

Prevent outliving your money with guaranteed income

Business Benefit: Ensures retirement security regardless of business sale timing

5. Access to Funds

Withdraw up to 10% annually after year one

Business Benefit: Emergency business funding without penalties after initial period

6. Outperform Traditional Fixed Products

Earnings tied to market index movements

Business Benefit: Growth potential that keeps pace with business expansion goals

7. Triple Compounding

Earn interest on contributions, interest, and tax deferral

Business Benefit: Tax-efficient growth strategy complements business tax planning

8. Annual Reset Feature

Interest locks in each year—no losses, even if index drops

Business Benefit: Protects accumulated wealth from market downturns affecting business

9. Efficient Wealth Transfer

Passes directly to beneficiaries, avoiding probate

Business Benefit: Seamless wealth transfer that complements business succession plans

10. Social Security Supplement

Helps bridge the retirement income gap

Business Benefit: Additional income stream independent of business performance

Strategic Business Applications

Pre-Exit Planning

Scenario: Business owner planning exit in 5-10 years

FIA Strategy: Use FIA to create retirement bridge income that’s independent of business sale timing and market conditions

Excess Cash Flow Management

Scenario: Profitable business generating consistent excess cash

FIA Strategy: Systematic FIA contributions for tax-deferred growth while maintaining liquidity for opportunities

Executive Benefit Programs

Scenario: Attracting and retaining key executives

FIA Strategy: Company-sponsored FIA programs as supplemental executive retirement plans (SERPs)

How Fixed Indexed Annuities Work for Business Owners

The Upside

• Participate in market gains when indices perform well
• Annual reset locks in gains permanently
• No cap on potential growth (varies by product)

The Protection

• Principal is protected from market losses
• Guaranteed minimum interest rates
• No downside risk to your initial investment

The Flexibility

• Access funds when needed (subject to surrender charges)
• Multiple index options for diversification
• Optional income riders for retirement planning

Integration with Business Exit Strategy

FIAs can play a key role in business exit planning:

1. Pre-Exit Phase - Build retirement income independent of business sale
2. Exit Phase - Roll proceeds into FIA for guaranteed income
3. Post-Exit Phase - Provide stable retirement income regardless of market conditions

Key Considerations

• Surrender charges apply if funds are withdrawn early
• Income riders may have additional costs
• Index performance caps and participation rates vary
• Tax implications of withdrawals and distributions
• Coordination with overall retirement strategy

Disclaimer

This article is for educational purposes only and does not constitute financial, investment, or insurance advice. Fixed Indexed Annuities are complex financial products. Consult licensed financial advisors and insurance professionals to understand how FIAs fit into your specific retirement and business planning strategy.