FIA contracts tied to a single index can suffer from the high cost of volatility associated with option-based strategies, leading to overpriced options and lower payouts.

New indexing strategies adjust exposure dynamically to predicted volatility, reducing unnecessary volatility costs and improving risk-adjusted returns.

Including fixed income and commodities (e.g., gold and Treasurys) can enhance returns while reducing risk. Dynamic weighting strategies based on asset volatility further optimize performance.

Long/short strategies in an index can provide more return potential and further reduce volatility, improving FIA payouts.

Adjusting index exposure based on market conditions can help mitigate drawdowns and enhance long‑term performance.

Why volatility plays a critical role in FIA performance

How volatility-controlled indexes can managing risk, unlocking more consistent growth opportunities and enhance participation rates.

What to expect in rising and falling market volatility environments.

The misconception of limited upside potential.

RILA performance is tied to option pricing, which is heavily influenced by interest rates and market volatility.

While the buffer provides partial protection, consumers can still face losses.

Even in rising rate environments where higher rates might intuitively seem to support better performance, cap rate may drop – surprising those expecting better returns.

What looks attractive in year one might look very different in year three or four.