Consumer Alert annual equity indexed annuity
Seniors and retirees need to be aware of the risks of investing in the stock indexed annuity “. Read on to find out how to protect yourself.
Such modest means who seem more vulnerable to sale in the stadium environmental impact assessment. The average investor EIA is 58 years old and invest $ 36,150. Those who are traditional ‘ CD ‘ savers who are not satisfied with low rates available especially targeted recently.
This alert is not issued. I’m not annoying. Because of my concern that the environmental impact assessment of the ‘ easy sell ‘ for financial professional salespeople. And unless you’re the financial mechanic can look under the hood to see how it works, you may not realize the disadvantages are clear.
First, let me explain environmental impact assessment studies. It allows you to participate in the stock market ‘ good times ‘ and ‘ guaranteed ‘ to earn a minimum of 3 per cent during times of ‘ bad ‘. In other words, it’s supposed to give you the peace of mind a certificate of deposit, but the growth of the stock market.
As a result, it’s easy to sell environmental impact assessment studies. And with commissions up to 10 or 12% of what you invest, insurance agents and brokers motive to recommend them!
Here are the main problems of environmental impact assessment:
They tie up your money 7, 10, 12 years or more, limit your flexibility.
If you need more than just a small portion of your money before then you will have to pay enormous surrender penalties can be up to 12%! Can lose principal due to the sanctions.
Environmental impact assessment studies are not regulated by the SEC or NASD and any ‘ guarantees ‘ only supported insurance company exporting power.
Most of the environmental impact assessment studies will put a limit to how much you can earn, regardless of how the stock market rises. But that doesn’t mean you can get the maximum amount of that …
And has many environmental impact assessment studies at a cost of assets is deducted from the ceiling. It is common to draw assets 2%. A maximum of 10% and 2% of assets fee, you can start earning greater than 8% in any one year.
Insurance company determines how to calculate returns. The result is losing control and can end up earning much less then market index.
You may not earn a guaranteed rate ‘ on the full amount of the investment. Only some pay a guaranteed rate of 90 per cent of your original investment and then only if you stay in years 7 or 10 or 12 families.
As history tells us that environmental impact assessment is not a very good investment. When you run the numbers, there are 10-year intervals since 1975 where no environmental impact assessment that excelled in the S & p 500 index. In addition, you can access your money in Index Fund for any time you want without automatic surrender penalties environmental impact assessment studies.
Think about it from the point of view of the insurance company. They know that by capping your return in the 10% they make years more than enough good to pay you 3% in a few years. In addition, you get% 2 return each year as well!
3% minimum appears well today but maybe you will feel differently when interest rates return to 5% or 6% or 7%. If you don’t feel comfortable investing in the stock market when interest rates were 6% and then don’t invest in the market now. Your ability to sleep at night is more important then the opportunity to earn a few extra bucks.
So here’s the bottom line, in my opinion. If you are looking for, do not invest in the stock indexed annuity “. If you’re investing for long-term growth, do not invest in “equity indexed annuity”. Quite frankly, I don’t think anyone who would benefit from owning one.