Luis is a 55-year old moderate to conservative investor living in South America. Over the last several years he has earned some stock market gains. He wants to:
- Earn investment income based on increases in the stock market
- Protect investment gains from market losses
- Leave a legacy to his children
- Have penalty free access to his investments
By purchasing Knighthead Annuity’s Safe HarbourTM FIA7, Luis’ investment of $250,000 can benefit from increases in the S&P 500® Index while enjoying 100% guaranteed protection from any losses. How? At the end of the contract year, the S&P 500® Index is compared to its price at the beginning of the contract year. A positive Index return is credited to the contract up to the cap rate. If the percentage change in the S&P 500® is zero or negative, the contract value remains the same and does not incur a loss. For future years, any interest earned is lockedin and protected from any future index losses. In other words, Luis enjoys potential market upside, without any downside risk to his principal or prior earned interest.
