Midyear Money Check: Could a Fixed Indexed Annuity Strengthen Your Retirement Plan?
June 26, 2025
As we reach the midpoint of the year, it’s a great time to evaluate your financial progress. Whether you’re a few years from retirement or already transitioning out of full-time work, a fixed indexed annuity (FIA) may offer a practical way to shore up your strategy. These hybrid insurance products offer market-linked growth potential with downside protection — qualities that can help you navigate uncertainty while planning confidently for the future.
Step 1: Take Stock of Where You Stand
A midyear review offers the chance to assess your savings, risk exposure, and income planning before year-end decisions become urgent. Ask yourself:
- Am I on track for my income goals in retirement?
- How much market exposure am I carrying, and am I comfortable with it?
- Do I have reliable income sources aside from Social Security?
If you find yourself unsure or overexposed, it may be time to rebalance your mix of investments and protected income. Blending traditional retirement accounts with guaranteed solutions can reduce stress and strengthen long-term confidence.
Step 2: Understand the Role of a Fixed Indexed Annuity
A fixed indexed annuity credits interest based on the performance of a market index — such as the S&P 500 — while guaranteeing that your principal is protected from market downturns. While you may give up some upside due to caps or participation rates, you also avoid the full brunt of market losses.
Key features of FIAs include:
- Principal protection from market losses
- Guaranteed minimum interest
- Tax-deferred growth, allowing compounding without annual tax drag
FIAs are designed to bring stability without sacrificing the opportunity for growth. As InvestmentNews notes, diversifying within a fixed indexed annuity — by selecting from a mix of index strategies and crediting methods — helps policyholders pursue more consistent, risk-adjusted returns, especially in volatile environments.
Step 3: Evaluate How an FIA Could Fill Gaps in Your Plan
If you’re feeling overly reliant on market performance or unsure how to create future income, an FIA may serve as a valuable complement to your existing plan. Consider how it might help:
- Supplement your 401(k), IRA, or Roth accounts with a source of guaranteed income
- Create a foundation of protected dollars during market dips
FIAs can act as the “bond” allocation in your portfolio, smoothing returns while giving you the flexibility to pursue growth with other assets.
Step 4: Make Midyear Adjustments While There's Time
Waiting until the end of the year often limits your options. Taking action now allows you to:
- Explore tools like FIAs while product rates and terms remain favorable
- Rebalance your portfolio before potential market or interest rate shifts
- Make smarter contribution and tax decisions while you still have half the year ahead
If you’ve already maxed out pretax retirement accounts and are looking for continued tax-deferred growth, a fixed indexed annuity can help bridge that gap.
The 1891 Financial Life Difference
At 1891 Financial Life, we offer fixed indexed annuity products that are built for individuals planning the next chapter with purpose. Our solutions help you grow and protect your nest egg — with features like guaranteed income, principal protection, and flexible options to fit your timeline and goals.
As a fraternal benefit society, we go beyond the transaction. We pair financial strength with personalized service and a mission rooted in giving back to members and communities.
Strengthen Your Retirement Strategy Now
Retirement planning doesn’t have to wait until December. A fixed indexed annuity may be the missing piece in your portfolio — one that brings balance, stability, and confidence as you head toward your long-term goals.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.