It is inevitable that everyday I get the question—Is the equity index annuity a scam? Here is my response. First of all, anything that is misunderstood is always criticized. It is inevitable that people will take shots at things they don’t know anything about. It has always happened and it always will.

Let me give you a small clue of the index annuity. It is a fixed annuity. You can’t lose money in it due to MARKET fluctuation. YOu can lose money in it if you try to get out early due to penalties. Yes, you can make more money that a pure fixed annuity but yes you can make less. Yes, it has a minimum guarantee. No, it could probably never outperform a strong bull market.

The reason it is thought of as a scam is not because of what it is. It’s because of what people THINK it is. It is sold as a stock market alternative…well IT’S NOT. It is not a stock market alternative but when someone buys it because they think it is and it underperforms, it is thought of as a scam. Furthermore, many times, the annuity agents themselves (no disrespect) have no clue how what they are selling works. Therefore, they give false expectations to the clients and then the client ends up on the bad end of the deal. Sometimes, it’s all about expectations.

Equity index annuities, like any other vehicle can be good and can be bad. It all depends on what a person is looking for. They are fixed annuities designed to provide the POTENTIAL to give a little bit better performance than traditional fixed instruments at the time. They are not designed to be stock market alternatives.

Unfortunately most people just don’t understand how they work. The bottom line is, they are not a scam. However, if you purchase one thinking it’s going to do something it’s not, you are going to believe it’s a scam. For more education read about click on Annuity Help. You will discover more than you ever needed to know about annuities. Furthermore, the Gold Package contains an entire documentary on Equity Index Annuities.

Remember, Ignorance is NOT Bliss.

Keys to buying immediate annuity (St. Petersburg Times)
Don’t have a pension? You can create your own by buying an immediate annuity that will send you a payment each month for the rest of your life. Unlike a deferred annuity, payments start right away. The chief benefit is the peace of mind from knowing you can’t outlive your income.

Companies Warm to Freezing Pensions: IBM, Verizon Workers Stop Accruing Benefits, a Sign of Things to Come (RedNova)
By Pamela Yip, The Dallas Morning News Jan. 11–Now we know what a dead pension looks like — frozen in place. The death knell has been sounding for the defined-benefit pension plan for years.

AXA Equitable rolls out new annuity package (Insurance Business Review)
AXA Equitable has launched a variable annuity package designed to guarantee regular income payments and offer growth potential.

Harvesting Equity When Planning For Retirement
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Sage Buys Verus For Credit-Card Processing
CRN – Sage Software plans to integrate credit-card processing and management know-how into upcoming versions of its accounting and ERP software, CEO Ron Verni said Monday. Sage acquired Verus Financial Management for about $325 million in cash and plans to

Some tweaking keeps teacher on track toward goals
San Diego Union-Tribune – Liliana Gonzalez has her mother to thank for her careful approach to money. Heeding the values and frugal measures she learned growing up, the 40-year-old elementary school teacher lives well below her means and has established ample savings. LAURA

Business Calendar
Arizona Daily Star – Association of Fundraising Professionals Monthly Meeting reservation deadline Doubletree Hotel, 445 S. Alvernon Way. Meeting is two sessions: “Ensuring Your Organization’s Relevance” by Simone P. Joyaux, and “Communicating Your Organization’s

The Investment Guide
Forbes – The relentless tidal wave of retirees is building. In 2006, the first baby boomers turn 60. So this Investment Guide focuses on how you can navigate retirement wisely. Our lead piece touts the benefits of straight annuities–low-fee instruments that