The Problem With Indexed Annuities, and Smarter Ways to Reduce Risk
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Before buying into “downside protection,” see why these complex products often do more harm than good.
With the market sitting near all-time highs, it’s natural to wonder what will happen next, and how to protect the investments you’ve built and seen grow. Periods like this often bring a wave of complex, high-cost products that promise market-like returns with little risk. This month, our webinar takes a closer look at two of the most popular examples, indexed annuities and indexed life insurance, which attracted nearly $200 billion in new investments last year alone. We'll explain how these products work, why they often fail to deliver the growth investors expect, and our recommendations for alternative strategies. We’re also reviewing significant upcoming tax-law changes that will affect charitable giving in 2026. Our latest short video highlighted below explains how new rules under the One Big Beautiful Bill Act of 2025 could create fresh opportunities for deductions for some donors, while also adding new limits for others. As financial products grow more complex and the rules continue to evolve, it’s more important than ever to have clear, unbiased guidance. As an independent, fee-only fiduciary firm, Arnold & Mote Wealth Management is here to help you stay focused on what you can control and ensure your retirement plan stays on track, no matter what the market does next. The Arnold & Mote Team October Webinar: The Problem With Indexed Annuities and Indexed Life InsuranceIn 2024, U.S investors purchased a record number of indexed annuities and indexed life insurance products. According to the Life Insurance Marketing and Research Association more than $190 billion in fixed indexed annuities and registered index-linked annuities were purchased, and $3.8 billion in new indexed universal life insurance products were purchased in 2024 alone. The army of marketers and salespeople behind these products promote market-linked investment growth, downside protection, and tax deferral to make these sound like the perfect investment for you. But behind the glossy brochures and catchy pitches lies the fine print that can make these products poor long-term investments. This month, we're reviewing the details behind these indexed products to help you understand why we recommend clients steer clear of these products.
In this webinar, we’ll cover:
Join us for the live broadcast at noon Central Time on Friday October 31st, streamed on our YouTube channel here:
Want a reminder before we go live? Click the button above and subscribe to our channel to be notified as the webinar begins: If you can't attend live, a replay of the webinar will be accessible immediately after and available alongside recordings of all previous webinars on our YouTube channel. If there are questions you'd like to have answered, simply reply to this email and let us know! Last Month's Webinar RecordingIf you missed last month's webinar, here is the recording of "Dynasty 529s - How to Create Tax Free Growth for Multiple Generations" From the Arnold & Mote BlogVideo: Changes to Charitable Giving in 2026The One Big Beautiful Bill Act of 2025 includes two important changes that will impact charitable giving starting in 2026. A new charitable deduction will allow most taxpayers, even those who take the standard deduction, to deduct up to $1,000 ($2,000 for joint filers) in cash gifts each year. Meanwhile, higher-income donors who itemize will see a new limit that slightly reduces the value of large charitable deductions. In our latest short video, Quinn explains what these updates mean for your giving strategy and how to make the most of your donations under the new rules.
We have this 2 page PDF summarizing these changes to charitable giving, along with the other significant tax changes from the 'One Big Beautiful' bill passed in July. Arnold & Mote Featured in the Press NASDAQ: Avoid These 4 Mistakes That Can Shrink Your Social Security IncomeWe were recently interviewed for a Nasdaq article discussing some of the most common and costly mistakes retirees make when claiming Social Security. The piece highlights how timing your benefits, coordinating spousal strategies, and understanding the long-term tradeoffs of early claiming can make a major difference in lifetime income. In the article, Matt emphasizes the importance of viewing Social Security as part of a broader retirement plan rather than a stand-alone decision. It’s a great reminder that careful planning can help ensure you get the most out of the benefits you’ve earned.
For those looking for more examples and details of Social Security strategies for those with spousal benefits, we did a webinar a few years ago on the topic here. See our other recent press mentions on our Press Page.
Looking for Something From a Prior Newsletter?As a reminder, you can now find the last 12 months of our newsletters here:
Whether you’re new and want to browse newsletters you missed or are trying to follow up on a topic from a few months ago, we’re now publishing all newsletters at the link above. We'll also keep this link at the bottom of all future newsletters.
Quinn and the Arnold & Mote Wealth Management Team (319) 393-4020 Contact Us | Blog | arnoldmotewealthmanagement.com You are receiving this newsletter because we've talked with you in the past about financial planning and wealth management. Privacy Policy The information herein was obtained from various sources. Arnold & Mote Wealth Management does not guarantee the accuracy or completeness of such information provided by third parties. The information given is as of the date indicated and believed to be reliable. Arnold & Mote Wealth Management assumes no obligation to update this information, or to advise on further developments relating to it. This is for informational purposes only. Investing may involve risk including loss of principal. Past performance is no guarantee of future results. |