Use a Fixed Indexed Annuity to Capture Nasdaq-Linked Growth With No Risk of Loss
Invesco is known for innovative growth strategies—especially through its flagship QQQ ETF, which tracks the Nasdaq-100 and focuses heavily on tech, healthcare, and consumer companies. These strategies have fueled massive returns over the past two decades. But they also come with major volatility—making them too risky for retirement if used directly.
The safer way to benefit from Invesco’s research and high-growth indexing? A Fixed Indexed Annuity (FIA) that uses Invesco indexes as a measuring stick to credit interest—without exposing your money to market losses.
This guide explains how these FIA strategies work and what each Invesco index is designed to do.
Why Use a FIA Instead of Investing in QQQ Directly?
Buying the Invesco QQQ ETF gives you access to high-growth Nasdaq-100 stocks—but if the market crashes, so does your portfolio. That kind of volatility is unacceptable for most retirees.
An FIA solves this problem:
- Principal protection: You can never lose money due to market downturns.
- Growth potential: Earn interest when the index rises.
- Locked-in gains: Credited interest can never be lost.
- Tax deferral: Pay no taxes on growth until you withdraw.
- Optional Lifetime Income: Convert the account into a guaranteed monthly income.
You get the upside of QQQ-like growth, but without the crash risk.
How a FIA Credits Interest Using Invesco Indexes
FIA providers use Invesco indexes as a “measuring stick.” You don’t invest directly in these indexes or ETFs. Instead, your annuity earns interest based on how much the index grows—usually through a participation rate.
Bull market example:
Invesco QQQ 15 Index gains 18% this year. With a 60% participation rate, your FIA credits 10.8% interest—and that gain is locked in for life.
Bear market example:
Index drops 22%. Your annuity earns 0%—but you don’t lose a penny.
You participate in the market’s upside, but never its downside.
Invesco Indexes Used in FIAs
- Invesco Dynamic Growth: A multi-asset index that rotates between asset classes like U.S. equities, bonds, and global markets based on momentum and market conditions. Balances growth and downside protection.
- Invesco Peak: Combines Nasdaq-focused equities with volatility control. Designed to give high participation in growth years with smoother returns during downturns.
- Invesco Peak II: Enhanced version of Invesco Peak. Uses a refined risk-control system to allow for higher participation rates and better stability.
- Invesco QQQ 15: Tracks the performance of the Nasdaq-100 with a 15% volatility target overlay. When markets get volatile, it moves some funds to cash to protect your returns.
- Invesco QQQ ETF: Tracks the Nasdaq-100 Index. Includes leading names in tech, biotech, and innovation (like Apple, Amazon, Nvidia): high return potential but high volatility if bought directly.
- Invesco QQQ Growth: A rules-based strategy that seeks out the strongest-performing Nasdaq-100 stocks while filtering out underperformers. Focused on momentum and upside potential.
- Invesco QQQ Portfolio Plus: Rotates between Nasdaq-100 exposure and cash based on short-term market strength. Targets smoother returns by avoiding large drawdowns.
These indexes are designed to offer high-tech growth potential—especially for those seeking Nasdaq exposure in a retirement-friendly manner.
Who Should Use a FIA With Invesco Indexes?
Best for:
- Retirees who want growth tied to technology without market crashes.
- Pre-retirees looking for tax-deferred growth with downside protection.
- Anyone who likes the potential of Nasdaq investing but wants to avoid emotional or financial losses during corrections.
- Investors planning to turn growth into guaranteed income using a GLWB.
Not ideal for:
- Traders or DIY investors who want control over every allocation.
- People seeking 100% liquidity in the short term (FIAs often have surrender periods).
- Investors willing to tolerate full market losses for the chance at unlimited upside.
What Other Insurance Might Help?
- Life Insurance: Can be used to leave a tax-free legacy or protect income in annuitization-based strategies.
- Long-Term Care Riders: Enhance your annuity with long-term care benefits, allowing your growth to help cover future healthcare costs.
- Disability Insurance (if not yet retired): Protects income while your FIA grows.
Final Thought
Invesco’s growth indexes—especially those tied to the Nasdaq-100—offer tremendous upside, but they’re not safe enough for retirement if used directly. A Fixed Indexed Annuity linked to Invesco indexes gives you the upside potential of QQQ strategies, the stability of volatility control, and the peace of mind of no downside risk.
Want to compare the best annuities using Invesco indexes, such as QQQ 15 or Peak II? Contact The Annuity Expert today for free quotes and expert help selecting the right FIA for your goals.
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