The Basics
FIAs are for people that
that want to participate in the stock market without the risk.
FIA products come with floor rates at ___% and sometimes ___%, depending on the carrier.
0%, 2%
If the floor is 0% and the stock market goes down 20%, the client will lose ___%
FIAs are tied to
the stock market
A ____ rate is the lowest that you will make from a % standpoint.
floor
If the cap rate is 8% and the stock market goes up 15%, the client will earn ____%
8%
MYGAs are tied to
the bond market.
A ________ rate is the highest interest rate as a fixed number that you will earn that year.
Cap
The cap rate is 8% and the market goes up 5%, the client will earn ___%
5%
FIAs are typically the best option when
the bond market is low.
A ______ rate is a percentage of the market gains that year that you will earn.
Participation
If the market goes up 10%, but you have a 50% participation rate, you will make ____% of the return that the market/index gave that year. Which gives you a ____% return that year.
50%, 5%
FIAs are tied to an _______ within the ______market
index, stock
An _______ is a group of companies pulled together within the stock market.
Index
If the client likes the idea of having more potential upside, then a ________ rate would make sense.
participation