Real Fixed Indexed Annuity Performance Results
Lots of people are curious and hindsight is always 20/20 but I’ve been seeing a lot of good interest credits on fixed indexed annuities this year. I figured it’s time to share a couple so anyone who is considering this realizes these contracts are nothing to be scared of. MYGAs are just fine for anyone who wants a pure guarantee but indexed annuities are there for anybody who wants to take a shot at more interest while also protecting the downside. A healthy market means that indexed annuity owners can enjoy some nice yields attached to the market without risking the downside.
I’m not trying to sell you something, just explaining what actually happened for a couple of contract holders. Each of the ones I’m going to share in the podcast have blended allocations with some of the money sitting in the fixed rate accounts of each contract. The individual indexes did much better but this is a look at how a diversified contract can produce suitable and even exceptional returns. Allocation is important and I have found that being aggressive with an indexed annuity will usually pay off in the long run. I’ve seen several people get conservative and keep money in the fixed account only to regret not getting the higher amount when the markets are up.
I’ll show the redacted statements in the podcast but I’m not going to post them online because the file is too big. I’ve got one each from what I called my favorite fixed indexed annuities for growth in a podcast earlier this summer. First we’ll talk about the blended performance for each contract and then look at the indexes individually. There is always plenty of opportunity with cap and participation rates as high as they are now so I don’t have a problem recommending this to anyone who wants a stable baseline with solid upside potential.
The Mass Mutual Ascend contract was issued in November 2022 so it’s almost three years old but has only hit two crediting periods so far. Initial premium into the contract was $285,393 and after two years to account had grown to $342,074. The company is kind enough to calculate the yield for us and you can see that it’s annualized at 9.41%. That’s some pretty solid two year performance on a safe asset with no fees. Allocations were simple and started as ⅓ in each of the fixed rate(4.5%), S&P 500(11% Cap), and SPDR Gold (12% Cap) indexes. None of these were changed after the first year so allocations were held steady for both years. If they had been aggressive with all of it they would have made a fair bit more but I think they are happy.
The Midland contract started with $253,167 and finished the second year with $287,930. This company does not calculate annualized returns so I have to do it manually. It comes out to a total of 13.7% so it has an average of about 6.75% annually. This is where you see that timing is important because this contract was issued in June 2023 and allocated 50% to some two year options in the beginning. The first year saw no credits on that but the second year got 4.4% on the fixed rate, 10.5% on the S&P 500, and 12.62% on the S&P 500 two year option. The first year was light on yield but the second year made up for it. This is how it works blending one and two year options and it typically evens out over time.
I expect both of these to average around 7% over time. We’ve had good markets but timing won’t always be perfect and at least this is well ahead of MYGA rates, which is the overall point. That does not mean you should never consider a MYGA because fixed indexed annuities are not consistent. A MYGA is really good for someone who needs systematic withdrawals. A fixed indexed annuity requires waiting for an interest credit and it may not be suitable for everyone. Both of the cases above have contract owners that have no immediate need for withdrawals so they can afford to play the game and it’s likely going to work out in their favor. Either way I’m past the point of arguing with people who say indexed annuity contracts are not worthwhile. This is just a quick sample of contracts that I’ve seen renew this year and I got the idea from another client who was quite happy with an 8.5% yield. It’s safe money without fees so what else do you expect?
Both of these contracts had potential to earn even more interest. Some people stress about choosing allocations every year but it’s not necessary. Some of the most consistent performers I’ve seen were blended among options in the beginning and never changed. They all average out over time so long as the rates hold steady. And that’s a big point that I missed so far. Both contracts going into their third year have not experienced a reduction in rates. When you stick with reputable companies then you can expect to do well over time. Get on my calendar if you want to run through some scenarios.
Have a great weekend!
Bryan
Watch Episode 189: Real Fixed Indexed Annuity Performance Results
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Last Updated on August 8, 2025 by Bryan Anderson
