Guaranteed Products for Retirees A Fixed Indexed Annuity (FIA) combines the traditional value of guarantees, with the opportunity to earn more interest than a traditional deferred annuity. Its main feature guarantees that your money will never be lost, or go down in value, and your gains are locked-in each year. It is sometimes called a “safe money” product because it’s backed by the financial strength of the insurance carrier guaranteeing safety, income, liquidity, and tax advantages.The interest earned on an FIA can be substantially higher because it ties the interest (return) to an external market index. In fact, this product was developed as an alternative to traditional savings vehicles because of its ability to provide greater returns. Fixed indexed annuities are useful for those who are adverse to risk in the stock market.At Focus 1 Advisors, we sometimes recommend them as part of a balanced portfolio when it comes to investment management and retirement planning services. However, it’s important to know that a fixed indexed annuity is not an investment, it’s an insurance product. A fixed indexed annuity is a contractually guaranteed transfer-of-risk strategy and a non-correlated asset.Please note: A Fixed Annuity should not be confused with a Variable Annuity. Variable Annuities are securities, sold by prospectus, and you can lose your money because you carry the risk of its performance. A Fixed Indexed Annuity is not a security, and therefore, your principal and earnings are guaranteed to never lose value as long as the insurance carrier is able to pay claims.Fixed Indexed Annuity payments and guarantees are dependent upon the claims-paying ability of the insurance carrier.When it comes to Fixed Indexed Annuities, you can count on Focus 1 Advisors. Call (310) 540-6197 for more information for a FREE 30-minute consultation to discuss your needs.