No-Fee Indexed Annuity: Guaranteed Lifetime Income with Zero Management Fees
Market-linked growth, principal protection, guaranteed income you cannot outlive, and a death benefit — all with zero annual management fees. Secure your retirement without paying a percentage of your savings every year.
What Is a Fixed Index Annuity?
A fixed index annuity (FIA) is a contract with an insurance company that provides two core benefits: growth linked to a market index and a guaranteed income stream you cannot outlive. Unlike a variable annuity, your principal is never directly invested in the market — meaning market downturns cannot reduce your balance.
When a market index like the S&P 500 performs well, your account is credited a portion of those gains up to a cap rate. When the market drops, your 0% floor ensures your principal and all previously credited gains are locked in. This combination of upside participation and downside protection makes indexed annuities a powerful tool for conservative retirement savers.
Fixed index annuities sit between traditional fixed annuities (guaranteed rate, no market link) and variable annuities (direct market investment, full risk). They offer more growth potential than fixed annuities and far more security than variable annuities. Our equity indexed annuities also include a death benefit, ensuring remaining value passes to your beneficiaries.
Want the full breakdown? Download our annuity whitepaper for detailed illustrations of how indexed annuity crediting strategies work, how income riders are calculated, and real income projection scenarios.
How Our No-Fee Indexed Annuity Works
Market-Linked Growth Without Market Risk
Your account value tracks a market index with a participation rate and cap rate defining how much of the index gain is credited to you. In years when the index is negative, your balance simply stays the same — the 0% floor means you never go backwards. Over time, locking in gains each positive year while avoiding losses creates compounding growth that is more predictable than direct market exposure.
Doubles Your Income-Producing Assets
Our indexed annuity effectively doubles the income-producing asset base for retirement income purposes. This step-up feature means that the value used to calculate your lifetime income payments can be significantly higher than your account value — generating substantially more guaranteed monthly income than the contract value alone would suggest.
Guaranteed Lifetime Income
At retirement, you activate the lifetime income rider. From that point, you receive guaranteed monthly payments for as long as you live — even if your account value is depleted. This eliminates longevity risk: the fear of outliving your savings. Social Security was never designed to be your sole income source, and this annuity fills the gap with income you cannot outlive.
Death Benefit
When you pass away, the remaining account value is paid directly to your designated beneficiaries — bypassing probate. Some riders guarantee that your beneficiaries receive at least the total amount you contributed, even if you took income payments during your lifetime.
Zero Management Fees
Most annuities charge 1% to 3% in annual management fees. On a $500,000 annuity, that is $5,000–$15,000 per year — money that comes out of your account rather than compounding for you. Our no-fee annuity eliminates this drag entirely. Over a 20-year retirement, the savings from zero fees can amount to hundreds of thousands of dollars in retained compound growth.
Fixed Index Annuity Rates and Returns
Fixed indexed annuity rates are determined by three factors: the cap rate (maximum annual gain credited), the participation rate (what percentage of index gain is applied), and the spread or margin (a deduction the insurer takes before crediting gains).
Historically, credited returns on fixed index annuities have ranged from 3% to 8% annually depending on market conditions and the specific index used. In years when the market drops significantly, the 0% floor locks in all previous gains. This asymmetric return profile — participating in upside, protected from downside — has historically outperformed bonds and CDs on a risk-adjusted basis.
During your free consultation, we provide a personalized illustration showing projected income based on current rates and your contribution timeline.
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Book a Free ConsultationIndexed Annuity Pros and Cons: An Honest Assessment
Advantages
- Zero annual management fees (our product)
- Guaranteed lifetime income you cannot outlive
- Principal protection — 0% floor prevents losses
- Tax-deferred growth during accumulation
- Death benefit passes directly to beneficiaries
- No market volatility — stable, predictable growth
- Income doubler feature amplifies retirement income
Limitations to Consider
- Cap rates limit upside in strong bull markets
- Surrender period (typically 5–10 years) limits early access
- Less liquidity than brokerage accounts
- Returns lower than direct equity in strong bull markets
Pair your indexed annuity with an IUL for the best of both worlds — guaranteed income from the annuity and tax-free flexible income from the IUL. See how annuities fit into a complete retirement income plan.
Who Should Consider an Indexed Annuity?
- Pre-retirees 5–15 years from retirement who want guaranteed income
- Retirees looking to convert savings into lifetime income
- Conservative investors who want market-linked growth without risk
- Anyone who has maxed out 401k and IRA contributions
- People seeking a death benefit combined with their savings vehicle
Already part of the Hybrid Arbitrage strategy? Learn how Hybrid Arbitrage pairs with annuities for a complete integrated approach to debt elimination and retirement income.
Frequently Asked Questions About Indexed Annuities
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