“New” Performance Trigger Being Added to the OptiBlend FIA on 08/22/22
In preparation for the launch of the Performance Trigger account in the Optiblend on Monday 8/22 I put together some numbers. This assumption is done with rates that are current as of Monday 8/22 in the Optiblend 5 for over 100k. The power behind the strategy is its simplicity — when the S&P 500 Index is flat or positive after a one-year term, the account is credited a specified rate. And if its negative, clients have 100% downside protection. Consider that when you look at the S&P 500 Index over the last 20 years — with positive returns 81% of the time!*
Optiblend 5 Rates and Allocation
- Fixed Rate crediting 3.75%
- Performance Trigger Crediting 7.75%
- Allocation 50% into each strategy
- Blended yield in a positive year is 5.75%
- Yield in a negative year is 1.875%
By the numbers
- If all 5 years are positive the average return is 5.75%
- If 4 out of 5 years are positive (80% of the time) the average is 4.975%
- If 3 out of 5 years are positive the average is 4.2%
- If 2 out of 5 years are positive the average is 3.425%
- If 1 out of 5 years are positive the average is 2.65%
- If 0 years are positive the average is 1.875%
*Morningstar Direct, 2002-2021. 1 year returns on a rolling monthly basis. S&P 500 price return index does not include dividends.