I didn't know I allocated my Fixed Index Annuity in the first place.

NOTE: This blog article is intended primarily for someone who already owns a Fixed Index Annuity. However, it will also be helpful for anyone considering the purchase of an annuity and interested in how they work, especially after you own one.

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When you purchased your Fixed Index Annuity you were likely overwhelmed by all the features, benefits, costs and limitations that your Insurance Agent shared with you. There could have been computer illustrations and brochures to review and discuss.

While it was a lot to discuss, that's because many Fixed Index Annuities today can be customized to your need for growth, income and protecting your heirs. You can balance these objectives like you see fit.

Even the most experienced and knowledgeable consumer would be hard pressed to understand and remember all that was presented to them.

One of the policy features that you discussed about your Fixed Index Annuity (FIA) was how you wanted to "allocate" your premium (the money you deposited or transferred into the new annuity) between the different "interest crediting strategies" that your policy offered.

Do these terms refresh your memory; "Standard & Poor's 500", "annual point to point", "participation rate", "fixed account", "spread" and "cap" Do these terms ring a bell?

Some FIAs have 10 or more ways you can allocate your money. Choice is a good thing.

This consumer brochure describes the interest crediting strategies for one company's Fixed Index Annuity. Page 5 begins a clear explanation of allocation options similar to what you are likely to have within your annuity. This annuity was selected as a good example.

How you split your money between the choices will determine how your FIA will grow.

Some years one interest crediting strategy will be the clear "winner" among the possible choices. For one reason or another that particular strategy is up BIG-TIME.

How much interest can be earned in a BIG-TIME example?

Two years ago, a client using a "spread" interest crediting strategy within her FIA earned over 30% in one year. Her $151,000 beginning year balance earned over $53,000 of interest.

In fairness, there have been other years where the "spread" option within her annuity has paid nothing for a year. Often these are years when the stock market is down.

Now don't worry if you are unsure that you have made the best decisions about the "allocation" of your money. You can make things better once a year.

That once-a-year event is your opportunity to "reallocate" your annuity account value. To change your mind or to respond to changes in your goals or the economy.

When does this reallocation opportunity happen? Right around your annuity's anniversary date. The anniversary date is the day your policy was issued.

Be on the lookout for an envelope or email from your annuity insurance company. Usually, 4-6 weeks before your anniversary date you will get a Reallocation Form. A form that you need to fill out, sign, date and return to the company. Often there are fax or email delivery options.

There is always a deadline on when the form must be returned to the company- miss the deadline and no changes will be made for the upcoming policy year.

How do you know which of the crediting strategies to pick? Should you divvy your annuity value between more than one option or stick with one for the long-term? Should you make any changes at all?

The best person to contact is your Insurance Agent if you are unsure of what to do. Their name and phone number are usually listed on your annuity's annual statement.

Sometimes your annual statement will list only the company's home office phone number. In that case your agent is no longer associated with the company.

I would be glad to provide a professional review of your options as you decide if reallocation might allow your Fixed Index Annuity to earn more interest.

One thing I hope your Insurance Agent takes into account as you discuss your options is whether or not your annuity policy has any "Living or Death Benefits".

Understand that your Fixed Index Annuity may have guarantees that can provide you with lifetime income or chronic illness benefits or even a minimum death benefit to your beneficiaries.

The presence of these benefits can significantly impact how you might choose to allocate your Fixed Index Annuity.

These benefits often come with an annual cost. Make sure you are getting all that you can from this recurring expense by understanding what you have, how it works and whether you should be taking advantage of any of the benefits right now.

When you receive your Reallocation Form you will see what your company offers in potential interest for each of the available choices for the upcoming year. These amounts will change from year to year. It is important to stay on top of the changes to make sure your money has the best opportunity for growth.

When is your annuity's anniversary? If you would like us to set a reminder for you that it is time to reallocate, use this link to send your info and we'll help you make that important decision.

Call your Insurance Agent if you have a good one, give us a call or send an email if you need a professional to talk with. Don't let another year go by. Make the most of a good decision- earn as much money as you can within your annuity.

Finally, here is some additional basic information about Fixed Index Annuities and their features and benefits.

Be well.