Tuesday, August 16, 2005
First and foremost, it is a fixed annuity and not a variable annuity. This means under normal circumstances (no insurance company insolvency, holding the product until maturity), you won't lose money. In fact, they inherently have minimum guarantees meaning if you hold them until maturity, you will be guaranteed to make some money for the most part.
The next thing about the equity indexed annuity is that it is not designed to beat the market. In fact, under most circumstances, it will not beat a normal market over time. It is designed to beat the fixed markets under the right conditions by 1 to 2 percent. This means it is not for the investor who wants to take chances and isn't afraid to lose money. ANd it's not for the investor who wants all the upside. It is for the risk averse investor who wants a fixed annuity to perform better than the fixed markets.
Last of all, there are many choices when it comes to the index annuity. There are good and bad choices. But most importantly, what makes them so is what is right for you. Features are only as good as the need! So the best thing is to do your homework. That's the bottom line. IT is not a good idea to trust your annuity agent. IT is best to do your own research. IF you need help, go to AnnuityMD.com and see the information there.
Ignorance is Not Bliss.
By the Way, I have been asked to post some resources for foreclosures so here they are: