2024 Annuity Index Performance

With all the focus on a hot stock market it’s a good idea to keep perspective and take a look at how fixed assets have performed in the past year as well.  Persistently healthy rates have delivered even more good annuity deals for people whether it be with guaranteed income or accumulation.  MYGAs have been the most popular by far but a number of people in the past several weeks have declined to purchase new contracts because rates have dropped.  So last week I shared an alternative with just as much safety, no fees, and plenty of top line growth.

Indexed annuities are not as scary as many people think and these days lots of contracts are looking really good.  Solid rates produced high cap and participation rates and a good stock market has helped owners capitalize on some very good annual returns.  As you know, those gains are now locked into the base contract value and can not be lost in the future.  If the stock market drops the account value is protected.  When it runs again, you can expect more solid gains. Simple as that.

I choose indexed annuities based on financial strength, customer service, and available products.  My past experience with each company is an intangible quality that heavily influences my decision.  You may only get one chance to make this decision so take it for what it’s worth.  MYGAs and income products require very little service but indexed annuities are far more interactive.  It’s nice to have a company that’s easy to work with and has stable renewal rates that keep potential alive for all years of the contract.  Plus, it’s much easier for me to have large blocks of business at a couple companies than it is to have smaller pieces in a dozen or more places.

Below are the three top companies on my list for accumulation-focused fixed indexed annuities.  I have a lot of experience with Midland and Mass Mutual and less with Athene, whom I’d give mixed reviews on customer service and processing.  Athene has gotten better over the past few years and I put them on the list mostly because the products are popular and competitive.  The following contracts all have several other index options but I chose just a couple of the better ones for each.  This will show both similarities and competitive differences.

Midland National – surrender terms from five to ten years

S&P 500 Cap Rates up to 9%

NASDAQ 100 12% Volatility Control

Past year 10.62% yield with up to 70% participation equals 7.43% annual return

S&P MARC 5% Risk Control

Past year 10.82% yield with up to 150% participation equals 16.23% annual return

Mass Mutual Ascend – surrender terms from five to seven years

S&P 500 Cap Rates up to 8% (guaranteed for entire surrender term)

S&P 500 Risk Control 10%

Past year 25.44% yield with up to 65% participation equals 16.54% annual return

SPDR Gold Shares Cap Rates up to 10.5%

Gold shot up substantially in the past year so this obviously capped out

Athene – surrender terms from five to ten years

S&P 500 Cap Rates up to 9.5%

NASDAQ Fast Convergence 12.5% Risk Control

Past year 12.5% yield with up to 110% participation equals 13.75% annual return

BNP Paribas Multi Asset 5% Risk Control

Past year 5.39% yield with up to 190% participation equals 10.24% annual return

Risk control measure and an important point to explain again.  There’s a podcast from last year that explains it in greater detail that is linked below.  The most important thing for consumers is that risk control gives consistent pricing in cap and participation rates because of less equity exposure in the index.  The greater the level of risk, the more growth you can expect in positive years but the lower risk indexes can return positive results when the market is down in value.

Learn more about risk controlled indexes here:  Crazy Annuity Indexes

This is just a snapshot of these contracts and the overall market in general.  But you’ll find little difference between these products and all the others available.  Is there anything better?  There are several that are comparable and several that aren’t near as good.  I know these contracts work so I have no incentive to shift my recommendations without a material reason.  When you look at financial strength, customer service, and product performance many others will be excluded for one reason or another.

If you’d like to explore any of the above options in more detail then hit the scheduling link in the top right corner.

Have a great weekend!

Bryan

Podcast Episode 153: 2024 Annuity Index Performance

Last Updated on September 26, 2024 by Bryan Anderson