Indexed Annuity provider with an inverse performance trigger crediting method ?

[scagnt83]

I think their time may be coming in 2022 and 2023

Only if you happen to have a contract anniversary in the few months out of the year the market happens to be down during a correction.

Even a true market recession is just 1.3 years on average. So in 2008/9, for most people, inverse trigger would have only yielded a positive return 1 year out of the entire annuity contract.

Assuming a 7y FIA, you are talking about a strategy that requires timing the market to find the 1 single year out of 7 the market is going to be down the ENTIRE YEAR.

FIAs are not meant for market timing. In fact, they are meant to eliminate the need for market timing. Negative years are not an issue for FIAs. So you made 0%... statistically speaking you will max out your Caps the next year... and you didnt lose a dime or have a single worry in a crashing market.

Inverse Trigger can be fine to allocate a small amount to as a slight hedge, especially if there is a fee attached to the product that would cause a negative return in a 0% year. But putting a large % of your funds in it is not going to be beneficial beyond just a single year at the absolute most.

 

[scagnt83]

Just finally stumbled on a good search term.

What I was talking about may have been North American, or something like North American, products with an inverse performance trigger.

I just changed the title heading to inverse performance trigger. Can't add an edit to the original post.

Midland National endeavour also, but the one with the inverse trigger has a 75K minimum which is outside my range at the moment.

North American no longer offers an Inverse Trigger option.

Midland still does, but the other index strategies are not competitive compared to other options available.

Most carriers have done away with the option because it so seldom gave a positive return over the past 20 years.