The results are in — but how will the 2024 US election affect annuities? 

Savvy investors understand that, in an election year, the best annuities are those that offer risk management features to offset turbulent markets.

Here’s how your annuities could be affected by the 2024 US election.

Will the US Election Impact My Annuities?

The US presidential election cycle often stirs up uncertainty, impacting the financial markets and sparking concern among annuity holders. Elections can influence economic policies, causing volatility that affects annuity values, especially market-linked ones. 

Market behavior during election years tends to be turbulent, driven by changing investor expectations and speculation about future policies. However, not all annuities are affected equally, and understanding the types that provide stability can help protect your financial future.

Best Annuities for Election Years

Navigating annuity investments during an election year can feel daunting, but choosing the right products can make a difference. While market volatility is often amplified during these periods, certain annuities provide stability and protection from unpredictable swings. 

Here’s a look at options that can help secure your financial future amid uncertainty:

1. Multi-Year Guaranteed Annuity

A MYGA offers a fixed interest rate over a set period, insulating you from market fluctuations. 

During election years, when markets can be unpredictable, MYGAs provide peace of mind with guaranteed returns, making them a stable choice for risk-averse investors.

2. Fixed-Index Annuity

FIAs link to a market index, like the S&P 500, but come with a safety net: you won't lose principal during downturns. They offer potential growth when markets rise but safeguard your investment when markets decline. 

In an election year, this balance of security and opportunity can be particularly appealing.

3. Registered Index-Linked Annuity

RILAs give exposure to the market with limited downside risk. 

They provide the flexibility to choose how much protection you want against losses and how much market upside to capture. In election years, this adaptability helps align your annuity strategy with your risk tolerance and economic outlook.

4. Annuities with Liquidity Guarantees

Some annuities offer liquidity options, allowing penalty-free withdrawals in case of emergencies. In uncertain times, like those around elections, this feature provides reassurance that you can access funds if needed without facing stiff financial penalties.

Final Thoughts

Election years can bring unpredictability, but annuities tailored to weather market changes can provide financial stability. Understanding your options and consulting a financial advisor can help you navigate this uncertainty while keeping your retirement plans secure.