Annuity contract guarantees are subject to the claims-paying ability of the underlying insurance company. As a result, our firm recommends annuities from insurance companies that meet the following three requirements.
Give us a call to help you determine whether an annual reset indexed annuity strategy might be right for your retirement plan.
Equity indexed annuities are contractually guaranteed retirement contracts that eliminate the downside risk of the stock market in exchange for a percentage of the upside market gains. Depending on the “cap” or “spread” (the maximum amount of interest your contract allows); the insurance company will determine how much of the upside potential in which you can participate. The reason you can’t lose your principal or your accumulated interest is because your money is actually not directly invested in securities. Instead, the account is linked to one of the stock market indexes, such as the S&P 500®. Since your money is not directly invested in the market, you will not experience a loss of your account value due to market downturns. One of the advantages of the equity indexed annuity strategy is that the downside market risk is eliminated, so you won’t need to be as concerned about maxing out your returns in order to offset your investment losses.*