The order of returns matters more than the average
Two retirees with identical average market returns can end up with wildly different outcomes — one running out of money, the other dying with millions. Walk through five interactive tools to see why, and how a small allocation to a fixed indexed annuity can change the math. Some FIAs include guaranteed lifetime income and pay a 100% bonus on annual income for five years if you need help with 2 of 6 ADLs.
Five major drawdowns in 25 years
The S&P 500 has delivered strong long-term returns — but the journey has been anything but smooth. Click any drawdown below to see what happened, how deep it went, and how long it took to recover.
Losses and gains aren’t symmetric
A 50% loss requires a 100% gain to break even — not a 50% gain. Adjust the slider to see how punishing recovery math gets at deeper losses.
Same average return, different timing
Two retirees. Both start with $1,000,000. Both withdraw 5% annually adjusted for inflation. The only difference: the order they experience returns.
The risk spectrum
Every investment sits somewhere on a risk spectrum. Most products force you into one camp — full market exposure, or principal protection with limited returns. Fixed indexed annuities live in a unique spot: at the top of the principal-protected tier, capturing partial market upside while guaranteeing you never lose principal in a down year.
A small allocation, a big change
A fixed indexed annuity caps your upside but guarantees you never lose principal in a down year. By drawing income from it during market downturns, you avoid selling stocks at the worst possible time.
Why “safe” CDs aren’t safe
Many retirees turn to CDs and money market accounts thinking they’re playing it safe. After taxes and inflation, a six-month CD has delivered a positive real return in only 7 of the past 26 years.
| Year | CD rate | Tax rate | Inflation | Real return |
|---|---|---|---|---|
| 2000 | 6.58% | 28.0% | 3.4% | +1.34% |
| 2001 | 3.64% | 27.5% | 1.6% | +1.04% |
| 2002 | 1.81% | 27.0% | 2.4% | -1.08% |
| 2003 | 1.17% | 25.0% | 1.9% | -1.02% |
| 2004 | 1.74% | 25.0% | 3.3% | -2.00% |
| 2005 | 3.72% | 25.0% | 3.4% | -0.61% |
| 2006 | 5.23% | 25.0% | 2.5% | +1.42% |
| 2007 | 5.23% | 25.0% | 4.1% | -0.18% |
| 2008 | 3.14% | 25.0% | 0.1% | +2.25% |
| 2009 | 0.87% | 25.0% | 2.7% | -2.05% |
| 2010 | 0.53% | 25.0% | 1.5% | -1.10% |
| 2011 | 0.33% | 25.0% | 3.0% | -2.75% |
| 2012 | 0.23% | 25.0% | 1.7% | -1.53% |
| 2013 | 0.20% | 25.0% | 1.5% | -1.35% |
| 2014 | 0.13% | 25.0% | 0.8% | -0.70% |
| 2015 | 0.13% | 25.0% | 0.7% | -0.60% |
| 2016 | 0.14% | 25.0% | 2.1% | -2.00% |
| 2017 | 0.16% | 25.0% | 2.1% | -1.98% |
| 2018 | 0.27% | 22.0% | 1.9% | -1.69% |
| 2019 | 0.43% | 22.0% | 2.3% | -1.96% |
| 2020 | 0.20% | 22.0% | 1.4% | -1.24% |
| 2021 | 0.09% | 22.0% | 7.0% | -6.93% |
| 2022 | 0.26% | 22.0% | 6.5% | -6.30% |
| 2023 | 1.21% | 22.0% | 3.4% | -2.46% |
| 2024 | 1.69% | 22.0% | 2.9% | -1.57% |
| 2025 | 1.57% | 22.0% | 2.7% | -1.48% |
Want to see your numbers?
A 15-minute Zoom screen share is all it takes to walk through how an FIA fits into your retirement plan. We'll show you the carriers, current rates, and the math for your specific situation.
Schedule a 15-minute callAbout this tool.Educational illustration only. Not financial, tax, or legal advice. Sample sequences use representative S&P 500 returns 2000–2024. Real-world results vary based on specific carrier, contract terms, and market conditions. Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing carrier.
Fixed indexed annuities are insurance products, not securities. They are long-term insurance contracts with surrender charges and limitations on liquidity. Although FIAs guarantee no loss of premium due to market downturns, they may have caps, participation rates, or spreads that limit interest credited. Withdrawals from annuities prior to age 59½ may be subject to a 10% federal tax penalty. Consult a tax professional regarding your specific situation. The simulations above use simplified assumptions for illustrative purposes and do not predict or guarantee future results. Past performance does not indicate future results.
Source data: S&P 500 historical returns, Federal Reserve CD rates, BLS CPI, North American FIA brochure.