Providing solutions for 10,000 Boomers leaving the worlforce daily
January 25, 2017 — CINCINNATI–(BUSINESS WIRE)–Great American Life® is expanding its annuity offerings with two new indexed strategies that earn interest based on the performance of the iShares U.S. Real Estate ETF and the S&P U.S. Retiree Spending Index.
iShares U.S. Real Estate Indexed Strategy
The iShares U.S. Real Estate ETF provides exposure to domestic real estate companies and real estate investment trusts. Allocating money to the iShares U.S. Real Estate point-to-point indexed strategy offers a convenient way for contract owners to obtain exposure to potential upside in the real estate sector.
According to John Burhoe, Vice President – National Sales Manager, the iShares U.S. Real Estate indexed strategy provides an opportunity for diversification.
“The real estate market tends to perform well when interest rates are low, which provides contract owners the opportunity to diversify their funds. Since returns on real estate typically vary from those on other asset classes, allocating to the iShares U.S. Real Estate indexed strategy may allow contract owners to earn interest even when other Indexes are performing poorly.”
S&P U.S. Retiree Spending Indexed Strategy
The S&P U.S. Retiree Spending Index provides exposure to economic sectors expected to be impacted by retiree spending.
According to Joe Maringer, National Sales Vice President, the S&P U.S. Retiree Spending point-to-point indexed strategy may allow contract owners to capitalize on the economic impact of shifting demographics.
“Every day, 10,000 baby boomers leave the workforce and bring their spending power and evolving priorities to the broader economy. The S&P U.S. Retiree Spending Index gives investors an opportunity to grow their money by exposing it to economic sectors where they – and other retirees – may be spending heavily. Economic sectors are determined by the Bureau of Labor Statistics, and include transportation, healthcare, entertainment and leisure. The S&P U.S. Retiree Spending indexed strategy may allow contract owners to grow their money based, in part, on where they are spending it, and should the inevitable drawback in the market occur, their money is protected through the structure of a fixed-indexed annuity.”
The new indexed strategies are available on several Great American Life fixed-indexed annuities beginning January 23, 2017. All fixed-indexed annuities from Great American Life are designed to simplify the path to contract owners’ retirement dreams. Each product offers protection from market loss, the opportunity to earn interest based on market performance and tax-deferred growth.
About Great American Insurance Group – Annuities
The annuity operations of Great American Insurance Group (GAIG) offer retirement solutions through the sale of traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets. Annuity subsidiaries include Great American Life Insurance Company® and Annuity Investors Life Insurance Company®. Great American Life is rated “A+” by Standard & Poor’s and “A” (Excellent) by A.M. Best for financial strength and operating performance.* GAIG’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company. The members of GAIG are subsidiaries of American Financial Group, Inc. (AFG). AFG’s common stock is listed and traded on the New York Stock Exchange under the symbol AFG. AFG is a Fortune 500 Company with assets of more than $50 billion. Learn more at GAIG.com.
*S&P rating affirmed March 2, 2016. “A+” is fifth highest of 21 categories. A.M. Best rating affirmed May 12, 2016. “A” (Excellent) is third highest of 16 categories.