Transamerica has announced a new partnership with FT Indexing Solutions that will introduce the First Trust Equity Edge Index to the Transamerica Structured Index Advantage Annuity. This collaboration aims to offer customers and distribution partners access to an index that addresses retirement challenges faced by Americans.
The addition of the First Trust Equity Edge Index enhances the annuity’s ability to provide growth opportunities while limiting downside market risk. By including this index option, Transamerica aims to support everyday Americans in saving for a fulfilling retirement.
Jonathan Cressman, Vice President and Managing Director for Annuities Wholesale Distribution at Transamerica, believes that partnering with First Trust will accelerate their growth momentum, thanks to the company’s talented distribution force. First Trust, as a leading exchange-traded funds provider, has a wide network of financial advisors that will play a crucial role in distributing the custom index to Transamerica customers.
The First Trust Equity Edge Index sets itself apart with its unique combination of high-quality and value-oriented U.S. equities. This innovative approach blends two equally weighted methodologies sourced from the Value Line Dividend Index and the Nasdaq U.S. Rising Dividend Achievers Index. By diversifying investments, clients gain access to a mix of assets that can navigate various market conditions.
Transamerica has a long-standing history of providing life insurance, retirement, and investment solutions to millions of customers in the United States. They are committed to helping individuals save, invest, and protect their loved ones. With this collaboration, Transamerica aims to expand its offerings and continue its mission of empowering people to live their best lives in retirement.
Please note that annuities are long-term, tax-deferred vehicles designed for retirement purposes and may be subject to market fluctuations and fees. It is important to carefully consider the investment objectives, risks, charges, and expenses before investing. Withdrawals may be subject to income tax and additional federal tax penalties if taken before a certain age.
In addition to the information provided in the article, there are some current market trends and key challenges associated with annuity options that should be considered.
1. Market Trends: Annuities have been gaining popularity as a retirement savings vehicle due to the continued uncertainty in the economy and the desire for guaranteed income in retirement. With increasing life expectancies and the decline of traditional pensions, individuals are looking for ways to secure their financial future.
2. Forecast: The annuity market is expected to continue growing as more Americans become aware of the need for retirement income solutions. According to a report by LIMRA Secure Retirement Institute, total annuity sales are projected to reach $303 billion by 2023.
3. Key Challenges and Controversies: One of the main challenges associated with annuities is their complex nature. Understanding the different types of annuities, fees, income options, and associated risks can be overwhelming for customers. Additionally, there has been some controversy surrounding high fees and commissions associated with certain annuity products, which can affect the overall returns for investors.
Advantages and Disadvantages:
Advantages of annuities:
– Guaranteed income: Annuities offer a steady stream of income in retirement, providing security and peace of mind.
– Tax deferral: Annuities provide tax advantages as earnings grow tax-deferred until withdrawals are made.
– Investment options: Annuities come with a variety of investment options, allowing individuals to choose a strategy that aligns with their risk tolerance and investment goals.
Disadvantages of annuities:
– Complexity: Annuities can be complex financial products, requiring careful consideration and understanding of the terms, fees, and surrender charges.
– Lack of liquidity: Annuities are typically long-term investments, and early withdrawals may result in penalties.
– Fees: Some annuities come with high fees and commissions, which can impact the overall returns and reduce the amount available for withdrawal.
For more information on Transamerica’s collaboration with First Trust and annuity options, please visit Transamerica.
Additional sources for further reading:
– LIMRA Secure Retirement Institute: link to main domain
– American Association for Long-Term Care Insurance: link to main domain