We just set an all-time record of 31 consecutive days above 110° here in Phoenix, officially making July 2023 the hottest in Arizona history. While temperatures are hotter than ever, they’re not quite as hot as the annuity rates we’re seeing. Fixed and Indexed Annuities are the best they’ve been since 2007. True upfront bonuses are becoming available and are the highest I’ve seen over my career dating back to 1995.
One of my favorites is Midland National’s, IndexBuilder. Midland National is A+ rated and has been insuring Americans since 1906. For a limited time, Midland is paying a 12% upfront bonus. That’s right, 12%! $100,000 becomes $112,000… $500,000 instantly becomes $560,000… $1,000,000 turns into $1,120,000.
But wait there’s more…
Midland is including an additional 7% upfront bonus if their ABR “Additional Benefit Rider” is selected, increasing the upfront, day one bonus to a whopping 19%!! $1,000,000 comes to the table with an instant $190,000 boost. This is a true upfront, day one, vested bonus, not to be confused with future income base bonuses, frequently advertised on the radio as described in my “Safe Money Corner” column in September’s Generational Wealth Strategies Newsletter.
While the bonuses are fantastic, it’s the potential upside from the interest earned, linked to the stock indices that’s got me so excited. In the IndexBuilder, you can choose from several index selections, including the S&P 500, Fidelity and Blackrock. You even have the option to short the market with their S&P 500 Inverse Trigger Strategy.
As an Indexed Annuity, it comes with a built-in “can’t lose” floor. So no matter how poorly your index linked selections perform, you lose nothing. It’s as if you could go into a casino and the manager tells you, “Go ahead and play as much as you like, and no matter what, you can’t lose.” “Plus, we’ll even give you an extra 19% to get you started!”
Not only will the 19% bonus be applied at the start of the original deposit, Midland will continue to apply their 19% bonus on any new funds received for the first seven years. This makes for a great alternative to renewing CD’s, Bonds, or old annuities. For example, take a CD portfolio with laddered maturity durations. As CD 1 comes due the first year, roll it into the Builder for the bonus. Next year CD 2 matures and is moved, followed by CD 3 and so on, each time enjoying the 19% added bonus.
We used a similar laddered CD/Bond/Annuity strategy for several of our clients back in 2007. Dr. Mark Skousen’s wife, Jo Ann, was one of them. She set up a laddered duration Fixed and Indexed annuity portfolio with the Bonus as the last rung. The end result was, Jo Ann’s portfolio remained unscathed from the 2008 debt crisis and had nearly doubled in value by 2020.
There are many similarities in today’s market to 2007. Will inflation continue to increase rapidly? Will real estate prices come crashing down as supply catches up to demand? The stock market continues to roll against all odds, but how much of it is synthetically fabricated? Credit card balances jumped above $1 Trillion for the first time this last quarter. Are we simply financing our way through this recent bull run? How long can it continue? Did the Fed over correct with a sharp decline of equity values looming in our future? Regardless of the outcome, with an Indexed Annuity, your portfolio will remain unharmed, growing safely on the sidelines until the next rebound.
Protect your portfolio today from future corrections and enjoy the upside of the stock market indices. To learn more, call me at 888-892-1102 or request your IndexBuilder Information Kit below, which will include a personalized example and brochure.
Todd PhillipsPresident P.S. Rates are the highest they’ve been since 2007, but Fed Chair Jerome Powell expects labor markets to slow, hinting at rate stabilization or possible decrease by the first of the year. I believe Fall of 2023 could prove to be the optimal time to lock into high interest rate deferred annuities.
Indexed Annuities vary from state to state and may or may not be suitable. Guarantees are based on the claims
paying ability of the insurer.
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