31 Aug Equity Indexed Annuities
For those who are interested in investing their savings in the stick market but are worried about losing their hard earned cash, there are options for you. One of the safest of these options is an Equity Indexed Annuity. As crazy as this sounds These types of annuities profit you money when the stock index its attached to does well, and protects your money if the index value falls. It does sound too good to be true but it actually isn’t.
The way that Equity Indexed Annuities work is based on interest. These Annuities are attached to a stock index and based on the performance of that index more interest is credited to you, the investor. However, the interest is not taken away when the value falls. When these annuities are attached to an index first the value of the index is calculated, these calculations are based on specifications made in the annuity contract. The idea is to create a guaranteed minimum return based on the worst case scenario, so as to be prepared in case the index performs poorly so that there is always a return for the investor. Basically you are given a guaranteed interest rate so that no matter how the index value goes up or down you will always get your money by guaranteeing that your account balance can never fall below the originally assigned value. These types of annuities offer the opportunity for maximization of your retirement funds while protecting them at the same time.
Equity Indexed Annuities are a great way to plan for your retirement, with a guaranteed return rate and the ability to enhance the earning potential of your retirement funds each year, this investment is a prime choice for many looking to retire comfortably and happily.
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