Related Pages

New Annuity Strategies:

Fixed Rate Indexed Annuities


  • There is no downward stock market fluctuation risk and all gains grow on a “tax deferred” basis.
  • Fixed Rate Indexed Annuities avoid probate---passing the value to a beneficiary avoids the lengthy delays and expenses of probate, making for a simplified way to transfer funds to beneficiaries.
  • Unlike IRA’s and 401K’s, investors can make unlimited contributions.
  • After the first year of purchase, most Fixed Rate Indexed Annuities allow for a 10% withdrawal of the premium amount invested
  • All Fixed Rate Indexed Annuities we recommend have a Beneficiary Put Provision which means that the annuity issuer guarantees a minimum of the account value upon death. We recommend policies that return the full account value to your beneficiaries. There are several different variations of put provisions available, although there is additional cost. 
  • The Insurance Companies we offer are highly rated A+ or better by AM Best and/or S&P. Companies such as North American Life Insurance Company, Mutual of Omaha, Protective Life, and Lincoln Financial are examples.
  • A Fixed Rate Indexed Annuity has several layers of security. First and foremost from the insurance carrier that enters into the contract with the investor. Lastly, the principal is further protected by the State Guaranty Association backing is from 100 up to 300 thousand depending on state of residence. The State Intervention Fund backing is also included in the contract which must be signed before a purchase is completed. However, selling the State Intervention Fund backing as the primary selling point is not critique.
  • Investors receive a contract similar to a prospectus.
  • Various riders can be added to the contract that might be helpful depending on the expense versus the added value.
  • Our licensed insurance Agent with over twenty-five years of experience is Steve Sapirstein who is our “Agent of Record” on the Annuity contracts.


  • Fixed Rate Indexed Annuities do not capture the full upside value of stock market increases.
  • You are locked into the contract until maturity unless you exercise a surrender clause which will shorten the maturity but lower the yield.
  • There is ordinary income tax owed on earnings during the withdrawal of the income payout stage.
  • As with all investments, there is a10% IRS penalty on withdrawals prior to 59 ½.
  • You can convert an annuity into payments based on your needs-whether that be payments for life or over a specified period. This is called Annuitizing which we seldom recommend because there is no principal left after the specific terms are concluded.
  • Market Value Adjustment- A MVA is the increase or decrease in the value of your assets held by the insurance company. Your annuity contract could decrease the surrender value, thereby hurting you if you should decide to terminate your annuity. The decrease in value is then passed on to you in the form of withdrawals in excess of the free amounts which includes full surrender. When this MVA is negative, it subtracts dollars from your surrender value, meaning that the surrender cost is higher.
  • Statement may reflect fluctuation in market value based upon the contract if it has a Market Value Adjustment (MVA) clause. If you want to surrender your annuity prior to the end of the guarantee period, an adjustment will be made. It could be a positive or negative adjustment, depending upon current market conditions. If interest rates are higher than when the contract was purchased, a negative MVA will apply. If interest rates are lower than when the contract was purchased, a positive MVA will apply. 
  • New York State is a difficult state for annuity products; therefore, New York State will typically have state-specific annuities that may not be competitively priced. We wonder if they have given sufficient consideration to Fixed Rate Indexed Annuities.


FRIAs can be a very helpful tool for managing your retirement savings because combined with a Guaranteed Lifetime Withdrawal Benefit (GLWB) contract, you can turn some of your savings into an income stream that will last the rest of your life and the life of your spouse as well.

When you buy a GLWB rider, you turn some of your savings over to an insurance company, during your optimum earning years which then provides a tax deferred build up of your savings for your retirement years. You also boost your return by having a FRIA track a stock index, such as the S& P 500. The insurer guarantees that your original principal won’t fall in value unless you make excessive early withdrawals. So there is no stock market loss risk and gains grow on a tax deferred basis. Gains are locked in and cannot be lost going forward. Some of the more innovative strategies now have no caps. A GLWB income rider can be attached to an FRIA which will guarantee a lifetime of either single or joint account income, even if the amount in the GLWB falls to zero the underlying insurer must still pay the guaranteed minimum amount of income for the rest of your life.

A Long Term Care provision is available with some insurance companies that will double the income for up to five (5) years at no extra cost if you and your spouse is confined to a nursing facility or hospital. A "Death Benefit" provision is available for zero or minimal cost with some insurance companies for people who can’t qualify for life insurance.

A Universal Life Policy with a Long-Term Care rider, will give you the flexibility of using a FRIA for extended care, while still leaving a death benefit for your beneficiaries equal to the amount that was not used for Long Term Care. This will also result in a Tax-Free benefit for the life insurance beneficiaries, in addition to the income stream of the remaining balance of the original annuity.

At Stoever Glass, we can show you how to leverage your investment benefitting both the insured and your beneficiaries.


Information contained herein is obtained from reliable third party  sources, however, its accuracy completeness or reliability is not guaranteed by Stoever Glass &Co., Inc. or it’s affiliates.

All annuity guarantees are subject to the financial health and paying ability of the issuing insurance company, Neither Stoever Glass & Co, Inc., nor its affiliates provide insurance company solvency guarantees.

A guaranteed lifetime withdrawals benefit is a rider that is available for an additional cost. It does not have contract value, cannot be accessed like a cash value, and will not reserve your account value which will deplete with each withdrawal until it reaches zero, though payments under the terms of the rider will still continue for life. Withdrawals in excess of the specified annual payout amount will permanently reduce future income.

Stoever Glass Insurance Agency, Inc., offers life insurance and annuity contracts that are issued by non-affiliated insurance companies, but not all insurance products are available in all states.

The information presented does not consider your particular investment objectives or financial situation and does not make personalized recommendations. This information should not be construed as an offer to buy or sell any particular security. The investment strategies and the insurance products shown may not be suitable for you. We believe the information provided is reliable, but Stoever Glass & Co., Inc. and its affiliates do not guarantee its accuracy, or its completeness. Any opinions expressed herein are subject to change without notice.

All reference to tax matters reflect the tax laws as of November 1, 2017 and may be subject to change.

Stoever Glass Wealth Management Client (Schwab Alliance)

Schwab is a registered broker-dealer, and is not affiliated with Stoever Glass Wealth Management or any advisor(s) whose name(s) appear(s) on this website. Stoever Glass Wealth Management is/are independently owned and operated. Schwab neither endorses nor recommends [{Stoever Glass Wealth Management}, unless you have been referred to us through the Schwab Advisor Network®. (This bracketed language is for use by Schwab Advisor Network members only.)] Regardless of any referral or recommendation, Schwab does not endorse or recommend the investment strategy of any advisor. Schwab has agreements with Stoever Glass Wealth Management under which Schwab provides Stoever Glass Wealth Management with services related to your account. Schwab does not review the Stoever Glass Wealth Management website(s), and makes no representation regarding information contained in the Stoever Glass Wealth Management website, which should not be considered to be either a recommendation by Schwab or a solicitation of any offer to purchase or sell any securities.