Trigger Good Returns

For those who like to keep their money protected from market losses, the recent rise in interest rates have created

some interesting opportunities. One attractive option is an index annuity that uses a trigger crediting method. What that means is that you receive a fixed return in the years the S&P 500 index is not down and zero interest in the years the index is

negative.

Currently we are seeing certain contracts offer trigger rates over

8%. For example, if the first year the S&P 500 is up 2% for the year, your account would be credited with the trigger rate. If the S&P

500 is negative the account value stays the same. Over the last 40 calendar years including 2022,

the S&P 500 has been negative

7 years or 17.5% of the time. If

80% of the years you are making

8% that is a 6.4% expected return without investment risk.

There are also index annuities that will allow you to earn 50%