The SECs involvement in Fixed Indexed Annuities may be changing, which wouldn’t be a bad thing. In 2024 FIAs hit record sales for the third year in a row topping over $126 billion. Because of the growing popularity and complexity of the product experts believe this may prompt the SEC to increase their involvement in the regulation of Fixed Indexed Annuities.
Currently, the states regulate FIAs because they are an insurance product. The SEC only regulates annuities that are classified as securities, like Variable Annuities and Registered Indexed-Linked Annuities. The SEC exists to protect investors. Even though a Fixed Indexed Annuity is not an investment in the stock market, they are often purchased by investors who are seeking potential growth with less risk.
At Alloy Wealth, our fiduciaries enjoy educating clients on all the ways they can have a successful retirement. We offer insurance services and often recommend Fixed Indexed Annuities when we feel the product aligns with our client’s needs and financial goals. If you go to our website, you can learn more about FIAs. We like to describe them as “safe money” products because they are backed by the financial strength of the insurance carrier. Because a Fixed Indexed Annuity is not a security, your principal and earnings are guaranteed to never lose value as long as the insurance carrier is able to pay claims.
At this point the SEC has only established rules requiring anyone selling FIAs to educate clients on what it is they are buying. They have not yet stepped in to regulate the product. If you’d like to learn more about FIAs and other ways to achieve your retirement goals, please call us. 800-689-3935