Equity Indexed

Home > Individuals & Families > Annuities | Request a Quote

Please review the Annuities main  page for more information. Equity Indexed Annuities offer all the benefits that are included in a deferred annuity, however the interest credited to the annuity is based on some outside market index. One of the more popular major market indexes is the S&P 500 ® McGraw Hill, Dow Jones Industrial Average, NASDAQ, Volatility Control Index, managed Balanced indexes and fixed interest. Most companies allow you to allocate funds between the separate accounts, which allows multi-strategies under one tax-deferred contract. Best of all no matter what happens to the Equity markets, since it is a fixed annuity by design you can not lose any of your hard earned money! Your original investment and a certain minimum interest rate are always GUARANTEED. Therefore, you have the upside potential of these leading market Equity indicators, with no downside risk of principal!

Because Equity Indexed annuities guarantee your principal and are conservative in nature – they are a good ‘Safe Money’ alternative for your investment portfolio and therefore generally more suitable for an older investor. With the low interest rate environment we have been in for many years now, these annuities offer potential for higher returns than would otherwise be achieved in fixed markets. In addition since all the earnings in Deferred Annuities are tax-deferred until taken, you have the advantage of all your earnings working for you to make more money – rather than have to pay taxes on your earnings as you would with a bank CD.

Many investors do NOT realize what ‘negative growth’ really does to their portfolios and the compounding effect it has, Equity indexed annuities NEVER have a negative year by plan design. It can take years to recover from a major market correction and if you are in or near retirement this could effect your Retirement Planning in a big way. 

Call our office today to get a quote and discuss your questions or concerns to see how an Equity Indexed annuity can work for you in your investment portfolio!