Personal Investments • Foolish to consider this fixed index annuity?

My portfolio consists of CDs, brokerage account for stocks and ETFs, and a 401(k) account.

I'm looking for a safe investment option for $100K, given that I have a high (probably too high) percentage of my assets in my brokerage account.

I found a 5-year CD with 4.8% APY.

I've also been chatting with my CU's financial advisor and he suggested looking at:
Reliance Keystone Index 7 Annual Point-to-Point Annuity tied to the S&P 500

Its index interest cap is currently 10% and it has a 1% minimum guaranteed return if the S&P 500 growth is negative in any given year. The fine print indicates that the index interest cap can change annually. Spoke to the financial advisor, and he said that once you're in a contract, Reliance rarely lowers the index interest rate cap, and if they do, it's by 0.25% to 0.50%

2 questions:

1. Where can I find the historical index interest rate caps?

2. Am I a fool for considering this investment option, given that there's no guarantee the index interest rate cap won't decline significantly, and I found a 5-year CD that pays 4.8%?

Thanks in advance.

Statistics: Posted by AliceLB — Thu Nov 14, 2024 7:43 pm — Replies 8 — Views 635

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