Is the Fidelity and Guaranty Safe Income Advantage Annuity Any Good?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Our Fidelity and Guaranty Safe Income Advantage Annuity Review

If you’re planning for retirement and considering your investment options, you may have come across the Fidelity and Guaranty Safe Income Advantage annuity. This fixed-indexed annuity is designed for conservative investors who prioritize safety and security in their portfolios. In this annuity review, we will explore the features, benefits, and considerations of the Safe Income Advantage annuity to help you make an informed decision about your retirement planning.

Key Takeaways:

  • The Fidelity and Guaranty Safe Income Advantage annuity offers safety and security for conservative investors.
  • It provides the opportunity to earn gains linked to a market index while protecting against downside risk.
  • Consider the terms and conditions, including surrender charges and potential market value adjustments.
  • The annuity’s returns are comparable to other fixed-income products like bank CDs and bonds.
  • Assess the impact of fees on the principal balance and carefully consider the need for an income rider.
F&Amp;G Safe Income Advantage Review

Understanding the Features and Benefits of the Fidelity and Guaranty Safe Income Advantage Annuity

The Safe Income Advantage annuity offers a range of features and benefits that make it an attractive option for investors. Here are some key highlights:

Guaranteed Growth Rate

One of the standout features of the Safe Income Advantage annuity is its guaranteed annual growth rate of 7.2% to the income base, regardless of market conditions. This provides investors with the potential to increase their retirement income over time, providing a sense of financial security.

Immediate Income Option

The annuity also offers an immediate income option, which allows individuals to retire on their own schedule. Investors can start receiving a regular income stream from the annuity right away, providing peace of mind and financial stability during retirement.

Inflation Protection

Another notable feature of the Safe Income Advantage annuity is its inflation protection. Investors can choose between level payments or increasing income options tied to an inflation index. This ensures that the annuity’s payout keeps pace with rising living costs, protecting the purchasing power of the income stream.

Roll-up Rate and Income Payout Rate

The annuity boasts a competitive roll-up rate of 7.5% per year, compounded up to 10 years. This is higher than many traditional fixed annuities, potentially accelerating growth over time. Additionally, the annuity offers an income payout rate of 12.47%, guaranteeing a consistent income stream until death, regardless of the annuity’s principal balance.

Minimum Investment Requirement and Income Rider Fee

It is worth noting that the Safe Income Advantage annuity has a minimum investment requirement of $10,000. This ensures accessibility for a wider range of investors. Additionally, an income rider fee of 1.05% should be considered when planning for the annuity’s long-term financial impact.

Overall, the Safe Income Advantage annuity combines attractive features such as guaranteed growth, immediate income, inflation protection, and competitive rates to provide a comprehensive retirement planning solution. Investors should carefully evaluate these features alongside their financial goals and consult a financial advisor to determine if this annuity aligns with their investment strategy.

Fidelity And Guaranty Fixed Index Annuity Reviews

What We Like

  • Established History: F&G’s establishment in 1959 showcases its longstanding presence in the industry, indicating reliability and experience.
  • Strong Ratings: The company boasts commendable ratings from reputable agencies like A.M. Best (A), Fitch (A-), Moody’s (A3), and Standard & Poor’s (A-). These ratings reflect financial stability and trustworthiness.
  • Competitive Lifetime Income Rider: This feature offers attractive options for those seeking long-term financial security.
  • Optional Inflation-Adjusted Income Rider: This rider is a significant benefit as it helps to safeguard your income against the eroding effects of inflation.
  • Flexibility in Investment: The option to purchase more upside potential provides an avenue for potentially higher returns, appealing to those looking to maximize their investment.

What We Don’t Like

  • Complex Index Options: A major drawback is that the majority of the index options are complex and not as well-known as mainstream indices like the Nasdaq or Dow Jones. This complexity could be a barrier for average investors who prefer familiarity and straightforwardness in their investment choices.

Our Recommendations

Given F&G’s strong historical background, robust financial ratings, and the attractive features of their lifetime income riders, we recommend F&G for individuals seeking a reliable and potentially lucrative investment avenue. However, we advise caution regarding the index options offered for those unfamiliar with complex financial instruments. Potential investors might benefit from consulting a financial advisor to navigate these choices better. Exploring options that offer similar benefits but with more familiar and less complicated indices is also worthwhile.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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