Education
How Money Grows
Money can grow in different environments: fixed, variable, and indexed. Each one has a different relationship with safety, growth potential, access, and risk.
Understanding the difference can help you decide what role each part of your money should play.
Here is a simple way to picture the difference.
Fixed
Stable and predictable.
Offers stability and predictable growth, often with lower risk.
Common examples may include
- Bank savings accounts
- Certificates of deposit, CDs
- Fixed annuities
Variable
Market-based growth and risk.
Market-based growth potential, with values that can rise or fall.
Common examples may include
- Stocks
- Mutual funds
- ETFs
Indexed
Index-linked growth with protection.
Principal protection, tax-deferred growth, and index-linked interest potential. May also provide guaranteed lifetime income.
Common examples may include
- Fixed indexed annuities
- Indexed universal life insurance
- Registered index-linked annuities
Examples are general and for educational purposes only. Product features, risks, fees, tax treatment, riders, and terms vary.
Why inflation matters
If money grows slower than the cost of living, purchasing power can fall over time. Growth is not just about account balance. It is also about keeping up with real life.
Why one strategy may not be enough
Different dollars may need different jobs. Some money may need safety and access. Some may need long-term growth. Some may need protection from major losses.
Not sure how your money is positioned?
You do not need to figure it all out alone. A Financial Reset Call can help you look at where your money is now, what each part is doing, and whether your current strategy still supports the future you want.
Important
This page is for educational purposes only and does not constitute financial, investment, tax, legal, or insurance advice. Fixed, variable, and indexed strategies each have different risks, benefits, limitations, fees, liquidity rules, tax considerations, and suitability requirements. Indexed strategies are not direct investments in a market index and may be subject to caps, participation rates, spreads, crediting methods, surrender charges, product fees, rider costs, and other limitations. Guarantees are backed by the claims-paying ability of the issuing insurance company. Actual results may vary. Please consult a qualified financial professional before making decisions about your financial strategy.