Independent Review of the Athene Nasdaq FC Index

What will be covered in this review of the Athene Nasdaq FC Index?

In this review, we will be discussing the following details regarding the new Athene Nasdaq FC Index:

• How the index works
• Realistic performance expectations
• Charges and fees
• Where it is best used
• Where it is most poorly used

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

If you’re considering a fixed index annuity, it is likely that you want the opportunity for market-linked growth, but without subjecting your hard-earned money to the constant ups and downs of the stock market.

One way to attain the “best of both worlds” is by opting for the Nasdaq FC (Fast Convergence) Index – which is sponsored with Bank of America – with an Athene fixed indexed annuity. This index “employs intra-day rebalancing,” according to Athene. So, in essence, it uses technology in order to adapt more quickly to changing market conditions.

Given the volatility and unpredictability of the stock market, this could be a welcome relief for investors – and particularly those who are quickly approaching retirement and don’t want to lose any principal.

But even so, prior to running out and committing to purchase an Athene (or any other) fixed indexed annuity, it is really important that you first understand how these financial vehicles work and then determine whether or not they may fit in with your short- and long-term objectives.

Annuity and Retirement Income Planning Information You Can Trust

If you have never been to our website before, please allow us to personally welcome you here. We at Annuity Gator are a team of experienced financial experts who are dedicated to helping you decode the complicated world of annuities. Here, we strive to create unbiased, yet highly comprehensive, annuity reviews – and we have been at this for far longer than most of those “copycat” websites out there.

Annuities are a unique type of insurance product in that they are the only financial vehicle that can make the promise of providing you with a lasting, lifetime income stream. Unfortunately, though, some advisors – albeit unintentionally – will tend to make them sound better than they actually are.

One reason for this is because, in order to obtain the nice benefits, there are oftentimes also some tradeoffs that you need to make. So, the reality is that you really do need to know just exactly what you might have to give up in order to get the guarantees and other benefits an annuity can provide.

Many annuity sales reps, and even many of the annuity websites that you’ll see online, will make some pretty bold claims about the performance of the annuities that they offer, such as:

• 7 to 8% return
• Low fees
• Guaranteed income for life
• No market risk

Look familiar?

The goal of the annuity and other product reviews that you’ll find here on AnnuityGator.com is to provide you with information on the features and benefits inside the annuity, and to help you better understand what the benefits could mean to you and your financial situation – both now and in the future.

So, if you’re ready to get started, let’s dive in!

The Nasdaq Fast Convergence Index at a Glance

Contract Year	1	2	3	4	5
Surrender Charge %	9	8	7	6	6

Opening Thoughts on the Nasdaq FC Index Offered with Athene Fixed Indexed Annuities

Athene Holding Ltd. and its subsidiaries issue, reinsure and acquire retirement savings products that are designed for those who are seeking income funding mechanisms in retirement. The company was initially founded in 2009 – but, while it is still considered relatively new to the retirement income marketplace, it has definitely made a mark.

Over the past decade, Athene has grown for more than $144 billion in total assets. It offers both group and individual annuities, which consist of multi-year guarantee annuities (MYGAs), single premium immediate annuities (SPIAs), and fixed indexed annuities (FIAs).

How Athene Describes the Nasdaq Fast Convergence Index

According to Athene, the Nasdaq FC Index “employs intra-day rebalancing.” The index is powered by Fast Convergence technology (patent pending), which allows it to adapt more quickly to changing market conditions – which in today’s market, is a constant.

The index applies high-speed technology to the stocks in the Nasdaq 100 index – which include some biggies like Amazon, Apple, Netflix, and Google. This index also uses an internal volatility-control mechanism that allows the issuer to offer higher participation rates (meaning that investors can take part in a higher percentage of the index’s gain).

By systematically monitoring market moves, and then rebalancing throughout the trading day, Fast Convergence, or FC, technology can more efficiently control the realized volatility of an index with the goal of higher participation rates in fixed indexed annuities.

Before we get into the gritty details, here are some legal disclosures we need to provide…

This is an independent product review, not a recommendation to buy or sell an annuity. Athene USA has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.

For more details on how you can compare annuities so that you can determine which one may be right for you, to instantly download our free annuity report.

How an Insurance or Financial Advisor Might Explain the Nasdaq FC Index to an Investor

Longer life expectancies have led to a primary concern among retirees and those who are approaching retirement – running out of income while it is still needed. But, an annuity can alleviate that concern. That’s because annuities are designed to generate ongoing income. And, with the lifetime income option, you never have to worry about it running out.

But regular fixed annuities typically offer painfully low returns on the funds in the account (even though these funds are allowed to grow on a tax-deferred basis). Enter the fixed indexed annuity, or FIA.

FIAs track underlying market indexes and can provide the opportunity for a higher return, but without having to put principal at risk. Plus, given their income features, fixed indexed annuities can appear to provide the best of all worlds!

Fast Convergence (FC) is specifically designed to adapt to changing economic market conditions more quickly and efficiently. By systematically monitoring market moves, and then rebalancing throughout the trading day, FC technology can more effectively control the realized volatility of an index with the goal of higher participation rates in Athene’s fixed indexed annuities.

With regard to the Nasdaq FC Index, which is offered on Athene fixed indexed annuities and sponsored by Bank of America, intraday rebalancing aims for increased efficiency and performance.

So, it is likely these key features that an insurance or financial advisor will focus on when discussing an Athene annuity and the Nasdaq FC index to a client.

But even using high-tech to rebalance the underlying portfolio, there can still be some risks to be mindful of. For instance, many FIAs place a “cap” or other types of limitations on the maximum annual return. Plus, annuity holders may also be subject to various fees, which in turn, can lower the overall return even further.

There are also no real guarantees that rebalancing will earn a higher return, or even keep the underlying index from performing poorly during a given period of time. So, while Athene may be selling the “sizzle”, it’s important that you also get a good look at the steak before you commit to it!

For the most up-to-date return information on the Nasdaq Fast Convergence / FC Index, go HERE.

The Annuity Gator’s End Take on the Nasdaq FC Index with Athene FIAs

With advanced technology becoming much more prevalent today in most industries, using technology-driven portfolio rebalancing could become a viable method for narrowing down profitable investments, and generating a higher return. But there’s still no guarantee that this tool is a better method for managing investments.

That being said, purchasing an Athene fixed indexed annuity with the Nasdaq FC Index as a tracking method could be a good option if your objectives are to:

• Generate a higher return than a regular fixed annuity
• Protect principal in a down market
• Secure a stream of guaranteed income in retirement

But you may want to pass on this strategy of using an FIA if you:

• May need the money for other obligations in the near future
• Do not plan to use the annuity’s income feature

Summary

There is a long list of factors that should ideally be considered when you are saving, investing, and planning for your future retirement income. With regard to using annuities for growth, as well as for either your primary income stream or even for filling in any retirement income “gaps,” it is important that you know exactly what you can anticipate. That’s because a different amount of income than you were planning on can make a big difference in your retirement lifestyle and on your life!

Because fixed indexed annuities – and their underlying tracked indexes – can be a bit confusing to understand, it is highly recommended that you first discuss your options with an objective annuity specialist who will educate you about the pros and cons, and who can also walk you through a comparison of several different options that could help you to reach your objectives.

Do You Have Any Questions on the Nasdaq FC Index? Did You Notice Any Mistakes in this Review?

Even though this review is a bit on the long side, our feeling is that we would much rather provide you with “too much” information on this product than not enough. Unlike other websites, we don’t just provide a nice rosy picture of annuities and related products. Rather, we give you the whole picture, as that is the only way to make a truly well-informed decision.

So, if you found this information to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too.)

In addition, we are aware that information regarding financial products can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits.

Are there any other annuity-related products that you would like to learn more about?

If so, just give us a shout and let us know, and our team will get to working on them right away.

Best,

The Annuity Gator

P.S. If you would like to read more of our Athene annuity reviews here are some links to check out:

• Athene Balanced Choice Annuity (BCA) Elevate Fixed Indexed Annuity
• Athene Ascent Fixed Indexed Annuity
• Athene Ascent 10 Bonus Fixed Index Annuity
• Athene Income Select Bonus Fixed Index Annuity
• Athene Ascent 10 Bonus 2.0 Fixed Indexed Annuity with Ascent Income Rider Option 1
• Athene MYG 5 Fixed Annuity
• Athene MaxRate 7 Multi-Year Guarantee Annuity
• Athene Ascent Accumulator 10 Fixed Indexed Annuity
• Athene Balanced Choice Level 10 Annuity
• Athene Agility 10-Year Fixed Indexed Annuity
• Athene Agility 7-Year Fixed Indexed Annuity