Indexed annuity buyers now have more options with two new strategies from Great American Life. According to a recent Yahoo! Finance article, one will be based on the performance of the iShares U.S. Real Estate ETF and the other on the S&P U.S. Retire Spending Index.
iShares U.S. Real Estate Indexed Strategy
According to John Burhoe, Vice President — National Sales Manager, the iShares U.S. Real Estate indexed strategy provides diversification. With exposure to both domestic real estate companies and real estate investment trusts, contract owners will have the potential to benefit from the upside of the real estate sector.
“The real estate market tends to perform well when interest rates are low, which provides contract owners the opportunity to diversify their funds. Since returns on real estate typically vary from those on other asset classes, allocating to the iShares U.S. Real Estate indexed strategy may allow contract owners to earn interest even when other indexes are performing poorly,” said Burhoe.
S&P U.S. Retiree Spending Indexed Strategy
This index strategy provides exposure to economic sectors expected to be impacted by retiree spending. Joe Maringer, National Sales Vice President, the S&P U.S. Retiree Spending claims that buyers may be able to capitalize on the economic impact of shifting demographics.
“Every day, 10,000 baby boomers leave the workforce and bring their spending power and evolving priorities to the broader economy. The S&P U.S. Retiree Spending Index gives investors an opportunity to grow their money by exposing it to economic sectors where they — and other retirees — may be spending heavily. Economic sectors are determined by the Bureau of Labor Statistics, and include transportation, healthcare, entertainment and leisure. The S&P U.S. Retiree Spending indexed strategy may allow contract owners to grow their money based, in part, on where they are spending it, and should the inevitable drawback in the market occur, their money is protected through the structure of a fixed-indexed annuity.”
The new strategies are available on many Great American Life fixed-indexed annuities beginning January 23, 2017. Each product provides protection from market loss, the chance to earn interest based on market performance and tax-deferred growth.
The new indexed strategies are available on several Great American Life fixed-indexed annuities beginning January 23, 2017. All fixed-indexed annuities from Great American Life are designed to simplify the path to contract owners’ retirement dreams. Each product offers protection from market loss, the opportunity to earn interest based on market performance and tax-deferred growth.
Written by Rachel Summit
