Fixed Indexed Annuities Can Be a Potent Diversifying Tool

They offer a unique combination of growth potential and safety but are complex, and selecting the right one takes thought and research.

An older man wearing gloves works on repotting plants at a table.
(Image credit: Getty Images)

Most financial experts believe that many older Americans are too heavily invested in the stock market, and now there’s evidence to back them up. When giant Fidelity Investments analyzed its retirement account customers, it found that 37% of those born between 1946 and 1964 (so-called Baby Boomers) have more equity holdings than they should. Depending on age, people in this age bracket should have from 47% to 67% in equities, according to Fidelity.

While it takes individual tailoring to achieve the right asset allocation, having too much in stocks is risky for older people, who don’t have as much time on their side to recover from market downturns. Furthermore, retirees who need money may be forced to sell equities during downturns. Excessive amounts in stocks can cause worry.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Ken Nuss
CEO / Founder, AnnuityAdvantage

Retirement-income expert Ken Nuss is the founder and CEO of AnnuityAdvantage, a leading online provider of fixed-rate, fixed-indexed and immediate-income annuities. Interest rates from dozens of insurers are constantly updated on its website. He launched the AnnuityAdvantage website in 1999 to help people looking for their best options in principal-protected annuities. More information is available from the Medford, Oregon, based company at or (800) 239-0356.