Capital Wealth · Protected GrowthCapital Wealth · Protected GrowthA registered index-linked annuity (RILA) gives you growth potential tied to a market index — the S&P 500®, Nasdaq-100®, S&P MidCap 400®, or Russell 2000® — with a built-in buffer or floor that absorbs some of the loss when markets fall. Pick your term, your index, and your level of protection. Below is an interactive calculator powered by the Strategic Outcomes rate sheet dated 06/15/2026.
A registered index-linked annuity is a long-term contract with an insurance company. You allocate a purchase payment into one or more "segments" — each segment links a share of your money to an index for a set period (1, 2, or 6 years). At the end of the term, the insurer credits you based on how that index moved, subject to a cap or participation rate on the upside and a buffer or floor on the downside.
The insurer absorbs the first 10%, 20%, or in some cases all of the index loss. You take anything beyond that. Example: a 10% buffer with a −15% index return means your segment loses only 5%.
The opposite trade: you take the first slice of loss (the floor — 10% or 0%), but the insurer absorbs everything beyond it. Caps a worst-case outcome instead of covering the first dip.
Dual-crediting: if the index drops 0–10%, you earn the opposite of the loss. Drop 10–20%, and your gain = buffer minus the loss. Losses only appear beyond the 20% buffer.
We offer access to two registered index-linked annuities. The calculator below uses Strategic Outcomes rates; an advisor can model Strategic Income side-by-side based on your income timeline.
Designed for clients still building retirement assets. Maximum flexibility across buffer, peak buffer, and floor segments — on 1-, 3-, and 6-year terms. Optional Rate Enhancement Rider (0.95% fee) lifts caps and participation rates for clients who want to push the upside.
Same index participation engine, wrapped around a guaranteed lifetime income rider for clients in or nearing retirement. Trade some upside cap in exchange for a predictable paycheck once you activate withdrawals — often the right fit for CalSTRS or CalPERS retirees supplementing pension income.
Enter a purchase payment, add one or more segment options, and the calculator will project how your contract value would have evolved under historical market scenarios. Segment allocations must total 100% before you can calculate.
| Segment | Cap | Participation | Allocation % |
|---|
fig.01 — Projected contract value, credited at term boundaries
How does paying for the Rate Enhancement Rider compare to a no-fee RILA or a traditional 1% AUM advisory account? Every assumption below is editable — change the return assumptions, fees, or participation rates and the projection rebuilds in real time. Important: RILAs credit the index price return only (dividends excluded, historically ~2% drag). AUM portfolios capture total return plus diversification (international, fixed income, factor tilts). Setting realistic assumptions is what separates a sales pitch from an honest plan.
fig.02 — RILA against an AUM-advised portfolio, net of fees
| Year | RILA Enhanced | RILA No-Fee | AUM Advisory |
|---|
Every segment option currently offered, with both standard rates and the enhanced rates available when the optional Rate Enhancement Rider is elected. Rates are subject to change.
Source: Principal’s “Current rates as of 06/15/2026” rate sheet, transcribed in full. Rates are declared by the carrier and change at any time — the rate in force is the one on your application date, so this is an illustration and not a quote. This table is generated from the same data the calculator uses, so the two cannot disagree. Not shown: the Nasdaq-100 6-year 0% buffer is offered at enhanced rates only (uncapped, 112% participation) and has no standard rate. Principal® Strategic Outcomes is not available in NY or OR and may not be available with all broker-dealers; per-segment state restrictions are noted in the table. Capital Wealth LG is not affiliated with Principal.
A buffer is a seawall: it takes the first slice of the drop, and you take whatever clears it. So the question that matters is not how often the index fell — it is how often it fell further than the wall was high. Every rolling monthly period Principal measured, through January 2026.
fig.03 — Negative periods, before and after a buffer
fig.04 — The full record by index
| Index | Average 1-yr return |
Periods positive |
Above a −10% buffer |
Above a −20% buffer |
Losses by size 0–10 / 10–20 / 20%+ |
Largest gain | Largest loss |
|---|---|---|---|---|---|---|---|
| S&P 50001/1984–01/2026 | +10.59% | 79.72%393 of 493 | 89.05% | 95.33% | 46 / 31 / 23 | — | -44.76%02/2008–02/2009 |
| Nasdaq-10002/1985–01/2026 | +17.51% | 82.67%396 of 479 | 87.89% | 91.04% | 25 / 14 / 44 | +121.63%02/1999–02/2000 | -67.28%09/2000–09/2001 |
| S&P MidCap 40003/1992–01/2026 | +11.38% | 75.92%309 of 407 | 92.14% | 97.05% | 66 / 20 / 12 | — | — |
| Russell 200001/1984–01/2026 | +9.45% | 70.33%346 of 492 | 84.76% | 94.32% | 71 / 47 / 28 | — | -43.31%02/2008–02/2009 |
| Index | Average 6-yr return |
Periods positive |
Above a −10% buffer |
Above a −20% buffer |
Losses by size 0–10 / 10–20 / 20%+ |
Largest gain | Largest loss |
|---|---|---|---|---|---|---|---|
| S&P 50001/1984–01/2026 | +72.70% | 90.07%390 of 433 | 97.46% | 100.00% | 32 / 11 / 0 | +236.18%03/1994–03/2000 | -15.04%12/1999–12/2005 |
| Nasdaq-10002/1985–01/2026 | +154.09% | 93.57%393 of 420 | 93.81% | 94.05% | 1 / 1 / 25 | +1048.38%03/1994–03/2000 | -61.26%12/2000–12/2006 |
| S&P MidCap 40003/1992–01/2026 | +80.81% | 100.00%347 of 347 | 100.00% | 100.00% | 0 / 0 / 0 | +235.20%05/2009–05/2015 | noneno losing 6-year period |
| Russell 200001/1984–01/2026 | +60.42% | 99.31%430 of 433 | 100.00% | 100.00% | 3 / 0 / 0 | +217.05%02/2009–02/2015 | -3.54%09/2005–09/2011 |
Note: a rolling monthly period runs month-start to month-end over the duration shown. Index returns are price returns — they exclude dividends, which is what a RILA credits. It is not possible to invest directly in an index, and a RILA does not participate directly in any index. Past performance is not a guarantee of future results. Cells marked “—” are omitted because the window Principal prints for them is not twelve months long, so the figure cannot be tied to a one-year period; they are left blank rather than corrected here.
The S&P 500® and S&P MidCap 400® Price Return Indices are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Principal Life Insurance Company. S&P® is a trademark of S&P Global, Inc. or its affiliates; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Principal Strategic Outcomes and Principal Strategic Income are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones or S&P, and none of those parties makes any representation regarding the advisability of investing in such products. Nasdaq®, Nasdaq-100®, Nasdaq-100 Index® and NDX® are registered trademarks of Nasdaq, Inc. and are licensed for use by Principal Financial Group, Inc.; the products have not been passed on by Nasdaq as to their legality or suitability, and Nasdaq makes no warranties and bears no liability with respect to them. The Russell 2000® Price Return Index is a trademark of the relevant LSE Group company and is used under licence; the LSE Group accepts no liability arising from use of, reliance on, or any error in the Index, and makes no claim, prediction, warranty or representation as to the results to be obtained from the products or the suitability of the Index for that purpose. Capital Wealth LG is not affiliated with Principal Life Insurance Company.
There is a real argument for both, and it is not the one usually made. An annuity defers every dollar of tax until you touch it — but it converts what would have been long-term capital gain into ordinary income, and it forfeits the step-up in basis at death. A taxable book pays tax every year, and keeps both of those advantages. Deferral has to out-compound a permanently worse tax rate. Sometimes it does.
How this is calculated. The annuity credits the index price return times participation, once per term, with no annual tax; the gain is taxed at your ordinary rate on exit, and is taxed the same way if a beneficiary inherits it, because a non-qualified annuity receives no step-up. The taxable book earns the same price return plus its dividend yield, pays the advisory and fund fee annually, pays tax on dividends each year and on gains realised through turnover (assumed 5% of unrealised gain per year), and adds both to basis. On exit the remaining unrealised gain is taxed at the long-term rate; if heirs inherit, it is not taxed at all. State tax, the 3.8% net-investment-income tax beyond what you enter, the 10% penalty on annuity gains before age 59½, surrender charges, and required distributions are not modelled. Enhanced participation rates are only available with the Rate Enhancement Rider at 0.95% a year, so the two inputs move together; the calculator says so if they do not. This is an illustration, not tax advice — Capital Wealth LG does not provide tax or legal advice, and the treatment of your own situation should be confirmed with your tax professional.
Fifteen minutes, one conversation — bring the allocation you built above and the horizon it has to serve. We’ll pull the carrier illustration, walk the rate sheet line by line, and tell you honestly whether a buffer, a floor, or neither belongs in your plan.
Begin step one — book the review → Or compare fixed index annuities →Strategic Outcomes and Strategic Income may not be available in all states or with all broker-dealers. 0% buffer segments are not available in Maryland. Peak buffer segments may not be available in all states or with all broker-dealers. Investing involves risk, including possible loss of principal.
Before investing in registered index-linked annuities, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and underlying investment options. This and other information is contained in the free prospectus which can be obtained from your Capital Wealth LG financial professional or by contacting your advisor. Please read the prospectus and, if available, the summary prospectus carefully before investing.
Index-linked deferred annuity contracts are complex insurance and investment vehicles. This contract is a security and there is a risk of substantial loss of principal and earnings. The risk of loss may be greater when early withdrawals are taken due to any charges and adjustments applied to such withdrawals. These charges and adjustments may result in loss even when the value of a segment option has increased. Clients should consult with a financial professional about the appropriateness of this product based on their financial situation and objectives.
There is risk that the segment interim value could be less than the original premium payment even if the applicable index has been performing positively. The buffer or floor rate provides limited protection. There is a possibility of a significant amount of loss of the total premium payment, credited interest and prior earnings. In the index-linked segment options it is possible that the total loss could be 100%. The cap rate limits the positive index change, if any, that may be credited to the annuity for a given segment term.
Withdrawals will reduce the contract value and death benefit. Some withdrawals may be subject to additional charges and adjustments. Withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty in addition to ordinary income taxes. Guarantees are based on the claims-paying ability of the issuing carrier.
Annuity products and services are offered through the issuing insurance carrier. Securities offered through a registered broker-dealer, member SIPC, and/or independent broker/dealers. Annuities have limitations. They are long-term vehicles designed for retirement purposes. Annuities are not intended to fund short-term savings goals.
The S&P 500® and S&P MidCap 400® Price Return Indices, the Nasdaq-100® Index, and the Russell 2000® Price Return Index are trademarks of their respective owners and are licensed for use by the carrier. Strategic Outcomes and Strategic Income are not sponsored, endorsed, sold, or promoted by these index providers, none of which makes any representation regarding the advisability of investing in such products.
Not FDIC or NCUA insured · May lose value · Not a deposit · No bank or credit union guarantee · Not insured by any federal government agency.
Contract: SF 1027. Riders/Endorsements: SF 1028, SF 1029, SF 1030, SF 1031, SF 1032, SF 1053, SF 1054, SF 1055. Effective 5/1/2025 or after: ICC24 SF 1061 through SF 1069. Registered index-linked annuities can only be marketed and sold by securities-licensed financial professionals. Any discussion of this product must be preceded or accompanied by a prospectus.
About this calculator. Hypothetical illustration only. This tool is not a recommendation and does not constitute investment, tax, or legal advice. Historical index data shown is from carrier historical illustration (2026). While the products themselves were not available during the historical periods referenced, the underlying indices were. Scenario returns applied are illustrative approximations; actual segment crediting depends on the specific rolling period selected at issue. Rates shown are transcribed from Principal’s rate sheet dated 06/15/2026 and are subject to change at any time; the rate in force is the one on your application date. Contact a Capital Wealth LG financial professional for a full personalized illustration.