A Fixed Index Annuity is the simplest answer to one of the hardest questions in retirement: "How do I keep growing — without losing what I have?" When the index goes up, you participate. When the index goes down, your account is locked in at the prior anniversary. No advisory fees. No mortality & expense charges. No fund expense ratios. Your money compounds without leakage, year after year.
Below: the four crediting strategies Capital Wealth most often selects on the Security Benefit Foundations Annuity — S&P 500 point-to-point, Nasdaq-100, Russell 2000 small-cap, and MSCI EAFE international. Plus the published rate sheet, a side-by-side fee comparison, and the official Security Benefit Nasdaq-100 performance calculator.
Your account is credited based on the positive performance of an index — S&P 500, Nasdaq-100, Russell 2000, or MSCI EAFE — up to a stated cap. Each anniversary, the credit is locked in and becomes the new floor.
When the index has a negative year, your contract is credited 0% for that year. Your account value never decreases due to market loss — only your potential gain.
Foundations charges no advisory fee, no mortality & expense charge, and no fund expense ratio. The only "cost" is the cap (the upside ceiling) — and it's transparent on the rate sheet, not hidden in a prospectus.
Foundations offers 15 crediting strategies. We narrow that to a four-index core that gives clients broad equity exposure without overlap: large-cap U.S., U.S. tech / growth, U.S. small-cap, and international developed. All four are 1-year Annual Point-to-Point with a Cap, which is the simplest crediting structure to understand and the easiest to model.
The 500 largest U.S. companies. The benchmark every other strategy is measured against. 1-year cap with no participation rate complications.
The 100 largest non-financial Nasdaq names — Apple, Microsoft, Nvidia, Meta, Alphabet. Higher cap reflects the index's higher volatility.
2,000 small-cap U.S. names. Domestically focused, less correlated to mega-cap tech, and historically the leadership rotator coming out of recessions.
Developed markets ex-U.S. — Europe, Australasia, Far East. Diversification away from a single-economy concentration. Currently leading global indices YTD 2026.
Caps are without dividends. Effective April 13, 2026. Rates are subject to change without notice. Caps shown are for new contracts; in-force contracts retain their current-term cap until renewal.
All 15 indexing options plus the Fixed Account, as published by Security Benefit. Source: Foundations Rate Sheet, effective April 13, 2026 (form 22-90291-07).
| Term | Index Crediting Option | 5-yr Product | 7-yr Product |
|---|---|---|---|
| 1-Year | S&P 500 Annual Point-to-Point (Cap) | 9.40% Cap | 9.65% Cap |
| S&P 500 Annual Point-to-Point (Trigger Rate) | 7.40% Trigger | 7.65% Trigger | |
| MSCI EAFE Annual Point-to-Point | 9.50% Cap | 9.75% Cap | |
| Nasdaq-100 Annual Point-to-Point | 9.50% Cap | 9.75% Cap | |
| Russell 2000 Small-Cap Annual Point-to-Point | 9.50% Cap | 9.75% Cap | |
| S&P 500 Annual Average | 9.50% Cap | 9.75% Cap | |
| S&P 500 Monthly Sum | 3.35% Cap | 3.50% Cap | |
| S&P 500 Factor Rotator Daily RC2 7% | 130.00% Par | 130.00% Par | |
| S&P 500 Low Volatility Daily RC 5% | 1.75% Spread | 1.50% Spread | |
| S&P Multi-Asset Risk Control (MARC) 5% | 200.00% Par | 210.00% Par | |
| Morningstar Wide Moat Focus Barclays VC 7% | 160.00% Par | 165.00% Par | |
| 2-Year | S&P 500 Factor Rotator Daily RC2 7% — 2-yr | 190.00% Par | 190.00% Par |
| S&P 500 Low Volatility Daily RC 5% — 2-yr | 1.00% Spread | 0.50% Spread | |
| S&P MARC 5% — 2-yr | 275.00% Par | 275.00% Par | |
| Morningstar Wide Moat Focus Barclays VC 7% — 2-yr | 210.00% Par | 220.00% Par | |
| Fixed | Fixed Account Interest Rate | 4.50% | 4.75% |
1% Bonus on all Purchase Payments made within the first contract year. Guaranteed Minimum Interest Rate (GMIR) on the Fixed Account: 2.45% on contracts issued on/after 04/01/2026.
A Foundations Annuity has no advisory fee, no mortality & expense charge, and no fund expense ratio. Compared with a typical brokerage account or 403(b) sleeve, the difference compounds — especially in down years, where fees are paid on top of losses.
| Cost component | Brokerage / 403(b) | Variable Annuity | Foundations FIA |
|---|---|---|---|
| Advisory fee | ~1.00% | ~1.00% | $0 |
| Platform / admin fee | 0.30 – 0.45% | 0.20 – 0.35% | $0 |
| Mortality & Expense | N/A | 1.00 – 1.40% | $0 |
| Fund expense ratio | 0.04 – 0.85% | 0.50 – 1.20% | $0 |
| Downside in a -20% year | −20% + fees | −20% + M&E + fees | 0% |
| Total annual drag in a flat year | ~1.4 – 2.3% | ~2.7 – 3.6% | 0% |
Brokerage / 403(b) ranges based on Capital Wealth's most-common custodians (Orion, Security Benefit Election 1, Vanguard direct). Variable Annuity ranges are typical industry values, not specific to any single carrier. The "cost" of an FIA is the cap on upside — not a fee that comes out of the account.
Security Benefit's published illustration: a $300K Foundations purchase on Dec 31, 2004, with 100% allocation to the S&P 500 Annual Point-to-Point Index Account at a hypothetical 8.00% cap. The 1% bonus brings starting value to $303,000. Through the 2008 financial crisis and the 2022 inflation-driven bear market, the contract never declined — it simply credited 0% in those years and resumed compounding from the locked-in floor.
Source: Security Benefit Foundations brochure (form 22-90291-07). Hypothetical 8% cap; actual caps are set per the published rate sheet and may differ. Foundations was not available until December 2012 — the 2004–2024 illustration uses simulated index performance for the prior period and should not be relied on as a predictor of future returns.
Security Benefit's interactive tool — pick any historical window and see what an FIA crediting strategy linked to the Nasdaq-100 would have credited each year, with caps applied.
The official Security Benefit product page: contract structure, surrender schedule, riders, state availability, and current rate sheet.
Foundations is best suited for clients nearing or already in retirement, with a low-to-moderate appetite for market risk, who can set funds aside for at least 5 years. We'll review your time horizon, your existing retirement assets, and how a portion in a fixed index annuity might lower your sequence-of-returns risk without sacrificing all of your upside.
The Security Benefit Foundations Annuity, form 5800 (11-10) and ICC10 5800 (11-10), is a fixed index flexible premium deferred annuity issued by Security Benefit Life Insurance Company. Product features, limitations, and availability may vary by state. Guarantees are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA insured, are not deposits, and are not guaranteed by any bank or credit union. Fixed index annuities are not stock market investments and do not directly participate in any equity, bond, other security, or commodities investments.
Saturday note + intraday alerts on portfolio moves. WSJ-driven analysis, no spam.
We'll also ask permission to send browser push alerts. Unsubscribe anytime.
Get every commentary in your inbox.
Free. One email per market day. Unsubscribe anytime.