{"id":6260,"date":"2021-08-03T17:32:00","date_gmt":"2021-08-03T17:32:00","guid":{"rendered":"https:\/\/www.annuityfyi.com\/?page_id=6260"},"modified":"2023-05-22T10:32:42","modified_gmt":"2023-05-22T10:32:42","slug":"best-structured-annuities-today","status":"publish","type":"page","link":"https:\/\/www.annuityfyi.com\/structured-variable-annuities\/best-structured-annuities-today\/","title":{"rendered":"Structured Variable Annuities Are Looking Particularly Attractive Today"},"content":{"rendered":"
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A good structured annuity is a promising investment and one that shouldn\u2019t keep you awake at night.<\/em><\/strong><\/p>\n\n\n\n

Prospective annuity buyers may consider the purchase of one of the three best structured annuities on the market \u2013 Athene Amplify, Equitable Structured Capital Strategies PLUS, and Brighthouse Shield Level Select 6.<\/p>\n\n\n\n

If you\u2019re scratching your head more so than usual this summer regarding which, if any, annuity to buy, you\u2019re in good company, especially now that the Federal Reserve has said it will probably boost interest rates starting in 2023.<\/p>\n\n\n\n

This suggests that fixed income annuities may be more generous down the road than they are today, and that may well give you pause. Another troubling reality is that the Federal Reserve only boosts interest rates when inflation becomes a problem \u2013 in fact, it already is \u2013 and the bull market has already slowed down accordingly and could easily lose yet more steam.<\/p>\n\n\n\n

So what should a prospective annuity buyer do? He or she may consider buying a so-called structured variable annuity, which, despite its appeal, is lesser-known than other annuities. These annuities \u2013 also commonly known as buffered annuities \u2013 deserve a bigger spotlight, particularly now, because they offer both the upside potential of the stock market and downside protection in the event of a bear market.<\/p>\n\n\n\n

Structured Annuities Are Different Than FIAs<\/strong><\/h4>\n\n\n\n

True, the far more popular fixed indexed annuities (FIAs) do the same thing \u2013 but with a substantial difference. You never lose a penny with an FIA, but this comes with a stiff price. You take a substantial haircut on the percentage of the annual increase in your chosen index and may even face a cap that cuts off your gains at a specified level.<\/p>\n\n\n\n

This isn\u2019t an issue with structured annuities, which offer much more upside potential with substantial \u2013 albeit not 100% \u2013 downside protection. Barring an extended and deep multi-year bear market \u2013 a scenario extremely unlikely as the economy gathers steam \u2013 this is the way to truly come out ahead financially, without fear of taking a huge financial beating.<\/p>\n\n\n\n

Prospective annuity buyers should consider the purchase of one of the three best structured annuities on the market \u2013 Athene Amplify<\/a>, Equitable Structured Capital Strategies PLUS<\/a> and Brighthouse Shield Level Select 6<\/strong>. Details about each are forthcoming. First, however, let\u2019s consider just how big a threat inflation really is to the stock market.<\/p>\n\n\n\n

Inflation is a problem \u2013 but not necessarily a big one<\/strong><\/h4>\n\n\n\n

No question, rising interest rates have always challenged stocks. But, historically, they have not been an insurmountable challenge unless inflation got out of hand. The reason is obvious: Markets rise when the economy strengthens and profits increase. Heightened business activity almost always results in higher inflation. There is no way out, and market bulls have learned to live with it and push stocks higher.<\/p>\n\n\n\n

So the question is this: Is the rise in inflation this time likely to be manageable? And the answer, unequivocally, is yes.<\/p>\n\n\n\n

The Federal Reserve has repeatedly said that the sharp spike in inflation in recent months is temporary, a result of an economy heating up in the aftermath of a deep slump and hampered, in part, by supply chain shortages and unusually generous unemployment benefits for millions still out of work. This prevents some of them from working.<\/p>\n\n\n\n

These issues aren\u2019t lasting, however. Manufacturers have begun boosting output and the federal government will stop augmenting jobless benefits in September. Another issue \u2013 workers staying home because of fear of becoming victims of the Covid-19 pandemic \u2013 will abate as more people are vaccinated, albeit at a slowing rate.<\/p>\n\n\n\n

Inflation has to be high to hurt stocks<\/strong><\/h4>\n\n\n\n

Economists note that rising inflation has typically been a positive for stocks until the rate surpasses 3.5% to 4%.This is when worries about rising wages and their potential pressure on profit margins begin to kick in. The Federal Reserve has made it crystal clear that it will not allow this to happen. That\u2019s why it recently announced a modestly more aggressive interest rate policy \u2013 designed, specifically, to put a lid on rising prices.<\/p>\n\n\n\n

Against this backdrop, structured annuities may seem appealing to you. Here are some details on each of the aforementioned annuities:<\/p>\n\n\n\n