Striking the right balance for retirement

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What is a RILA?

Registered Index-Linked Annuities (RILAs) are designed to offer greater potential for interest growth, making them an attractive option for those who seek more growth potential than fixed or fixed-indexed annuities, and are willing to accept additional risk.

How a RILA can help grow your savings

Is finding the right balance between protecting your principal and pursuing growth top of mind? If so, RILAs can be an integral part of a long-term retirement strategy.

RILAs utilize the performance of an external market index to determine potential gains and losses. While RILAs may have limits on the upside in the form of caps, you are also shielded from complete exposure to market downturns, thanks to a level of downside risk in the form of buffers.

Each index-linked interest crediting strategy has a crediting method, crediting period and is tied to a market index. Interest to be credited (which may be positive, negative, or equal to zero) is determined at the end of the crediting period. Prior to the end of a crediting period, an interim value will apply to the account value. That means the account value will be adjusted based on market factors and the adjustment can be positive, negative or equal to zero. Before investing in a RILA, talk with your trusted financial professional to ensure you understand the complexities specific to that product.

Striking the right balance

When the index return is positive, you participate in a portion of potential market index gains and earn interest on your premium.

When the index return is negative, your premium is protected up to a stated percentage, called a buffer. Then you are responsible for any losses beyond the buffer. Loss of principal is possible. It is important to talk with your trusted financial professional to ensure you understand the risks associated and make informed investment decisions.

The selections you make in a RILA can help you strike a balance between risk and potential reward.

Interest credits above the cap aren't realized as a trade-off to have a buffer in place Interest is credited up to the cap Benefits from index gains
Potential outcome with positive index change

Potential outcome with negative index change
Your investment is protected up to the buffer Losses are absorbed by the insurance company up to buffer Losses beyond the buffer are applied to your investment

Key terms

Buffer: The buffer is the percentage of negative index change that can occur before you are credited with negative interest credit. In other words, a buffer protects you from a percentage of loss. You take on any percentage of loss that is in excess of the buffer percentage.

Cap: A cap is the maximum interest rate you can earn, regardless of the change in the index. Interest rate caps designate the ceiling, or maximum gains, for indexed annuities.

Crediting method:How the interest credited is determined.

Crediting period: The investment period over which the index performance is measured to determine the interest credited.

Index-linked crediting: Index-linked crediting uses the performance of an index to determine how much interest is credited to the annuity value.

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“F&G” is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York. Life insurance and annuities issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA.

Guarantees are based on the claims paying ability of the issuing insurer, Fidelity & Guaranty Life Insurance Company, Des Moines, IA. F&G Securities, LLC. “FGSL” is a broker-dealer and affiliate of F&G and is a member of FINRA and distributes this product.

Registered index-linked annuities (RILAs) are long-term, tax-deferred vehicles designed for retirement purposes and are not for everyone. They are subject to possible loss of principal and earnings due to market fluctuation, investment risks as a result of fees and charges under the policy including surrender charges, other transaction charges, and periodic charges.

RILAs are designed primarily for investors who expect to remain invested in an allocation account until the end of its crediting period and may be appropriate if they have a long investment time horizon. RILAs are not designed for people who expect to take early or frequent withdrawals.

Surrender charges may apply to partial and full surrenders. Surrenders may be taxable and may be subject to penalties prior to age 59 ½.

Registered index-linked annuities can only be marketed and sold by securities licensed financial professionals. To view individual credentials, visit

F&G annuities are insurance products not guaranteed by any bank nor are they insured by FDIC, NCUA/NCUSIF, the Federal Government or any agency. They may lose value. There is no bank or credit union guarantee, and they are not a deposit. They may be offered only by a licensed insurance agent.

F&G is not providing investment advice for any individual or any individual situation.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. This information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

This website contains highlights only. Any product discussion must be preceded or accompanied by a current prospectus.

ADV4663 (10-2023)