People who
buy equity index annuities are looking for a safe investment that allows them to defer income taxes on the interest they earn.
The average returns
on equity indexed annuities (or fixed indexed annuities) tend to be higher than fixed annuities or bank products due to the linking to index returns.
To annuitize is to transition your existing fixed, variable or
equity indexed annuity into a stream of income through the insurance company.
By the way just how much money did people lose
in Equity Index annuities this past year, two years, three years or ever due to the market??? Oh, opps that would be NONE as in Zero.
Equity indexed annuities [EIAs] are tricky to design an investment strategy for.
Jeff makes some good points about alternative investment options (ie: discounted notes), but his advice
about equity index annuities or equity index life insurance products is absolutely horrible!
Jane — As a former RIA I decided to move ALL my clients out of the rigged stock market in March of 2000 and into
Equity Indexed annuities for the sole purpose of protecting their investments.
Fixed Indexed Annuities with Income
Rider Equity Indexed Annuities (also called Fixed Index Annuities) are a fixed annuity structure with an attached income rider that can be used for «target date» income planning.
And every time I write about something like the dangers
of equity indexed annuities, or leveraged ETF's, or even student loan reform, I often hear, «Look, in the right hands these are useful tools, just like a sharp knife is a useful tool.
Equity indexed annuities are, for most people, not a great idea.
While the best interest contract exemption (the BIC, or BICE) would allow advisors to continue to sell traditionally commission - based products, such as variable and
equity indexed annuities, it also exposes the insurance carrier to a heightened liability standard.
(It used to
the Equity Indexed Annuities; now I get hate mail if I use that term.)
There are a number of factors one should evaluate before investing in
an equity indexed annuity (including but not limited to: rates, indexes, crediting strategies, surrender charges, surrender fees, riders, etc.).
An Equity Indexed annuity is a Fixed Annuity where the rate of interest is typically set to an index like the S&P 500 Index (but there are many more in today's market).
An equity indexed annuity is a brilliant invention by insurance companies to make a ton of money under the guise of safety and security.
An equity indexed annuity is still a fixed annuity.
Equity indexed annuities are a BIG business and there are hundreds of companies offering thousands of different types of equity indexed annuities.
An equity indexed annuity is an insurance product offered by insurance companies that, for exchange of your money, will link the performance of your annuity to some type of underlying market index like the S&P 500, Dow Jones, Gold, etc..
Not
an equity indexed annuity too, that's the problem.
Another thing that makes me cringe is hearing what I believe to be
Equity Indexed annuities being hawked on the radio.
My friend, Allan Roth, posted an article today about
an equity indexed annuity that he came across (you can read Allan's piece here).
«
Equity index annuity» and «fixed indexed annuity» are used almost interchangeably to refer to the same type of contract.
He said that
equity indexed annuities, known as fixed indexed annuities (FIAs), were among the most complicated investments he had examined.
Within the genre of indexed annuities, an interest indexed annuity would perhaps be more conservative than
an equity indexed annuity with the comparison being the former tying the return to the bond index verses the S&P 500.
Over the last few years a few very creative insurance agents have come up with names for fixed indexed annuities (or
equity indexed annuities) in order to make the public believe they had the «magic bullet» annuity.
The equity indexed annuities sometimes gets a bad rap because of the fees involved... one client who bought one indexed annuity at the best possible time (about six months before the market completely imploded) she saved about $ 100,000 in losses if it had been where it was before we moved it to the indexed annuity.
Another form of annuities that offer guarantees are fixed index annuities (FIA's and also referred to as
equity indexed annuities).
Equity Index Annuities may be referred to as fixed index, index, or hybrid.
Equity index annuities are NOT...
Equity indexed universal life or indexed universal life insurance (IULI) is similar in concept to
equity indexed annuities (EIAs), discussed in Chapter 17, except that they provide life insurance protection.
At the top of the complexity scale are indexed annuities (also known as
equity indexed annuities and fixed index annuities).
Have you heard of this investment product called an index annuity (also called
an equity indexed annuity)?
«The solution is
an equity indexed annuity with a lifetime income benefit rider,» he explains.
Equity index annuity - This annuity combines fixed and variable features.
Then there are
equity index annuities, which are like a fixed annuity with a guaranteed rate, but you also have the potential to earn additional interest depending on what the stock market does.
Immediate annuities, inflation - adjusted immediate annuities, variable annuities, variable annuities with guaranteed income riders, deferred annuities that function as a form of longevity insurance, annuities with long - term care riders, fixed annuities,
equity index annuities, equity indexed annuities with guaranteed income riders...
There are also fixed annuities and
equity indexed annuities.
Once you understand the immediate or deferred annuity question, you need to grasp the three different approaches to the annuity; fixed, variable, and
equity index annuity.