“Indexed” Annuities Offer You The Potential for More Upside, With Little Risk – Do the Research Yourself…
“Indexed” annuity products allow your rate of return to be tied to some market index, such as the S&P 500 or Dow Jones Industrial Average, which may allow you the potential for higher returns than other types of investment opportunities that offer you a fixed-rate, rate of return. In addition, “indexed” annuity insurance products generally offer you protection against down-side risks normally associated with normal fluctuations in investment markets.
Did you catch that? You have the potential for higher returns, while at the same time, you have protection against down-side risk. What could be better?
In most “indexed annuities”, you have a market index on which your rate of return is calculated on a period basis. This index is your basis for rate, although you do not share in the positive moves 100%. In this type of contract, your rate is a portion of the overall market index rate. Your portion is called your “Participation Rate“. Each company, and each annuity offers different a participation rate, so be sure to check with your Cool agent for this important particular.
Another feature that is very important to this type of annuity buyer is tied to the annuity’s offered “Minimum Rate of Return” which basically says that if the market index is negative for a particular period, YOUR account does not drop, and that is KEY. You have downside market protection.
If the market goes up, you win. If the market goes down, you do not lose.
For more information about how “indexed” annuities work, see your Cool agent.
- Better Potential Returns Than on Other Comparable “Safe Money” Investments or Fixed-Rate Annuities.
- Tax-Deferred Growth of Your Money. Just like with every tax-deferred annuity.
- Proceeds of Account Goes Directly to Your Beneficiaries and Avoids Probate (Like life insurance).
- Flexible Funding. You can put money into an annuity in a lump-sum, or make regular contributions.
- Variety of Payout Options Later. You can withdraw it all in a lump-sum or arrange regular payments to you for the rest of your life.
- No limits on Contributions. Retirement plans say you can only put back a portion of your income and have limits on what you can save every year. There are no limits on how much you can save with a tax-deferred annuity, when you invest non-qualified money.
- Illiquid. Just like Certificates of Deposit (CDs) – when you put it away, it needs to stay there. You can incur penalties for early withdrawals.
- Possible Surrender Charges if You Withdraw Early. Although some annuities contracts do call for partial withdrawals with no surrender charge.
- Long-Term in Focus. This is money for retirement. Penalties if you withdraw prior to age 59 1/2 generally.
- More Complex Than Other Investment Types. You need a Cool agent to explain your options.
Do Some Research For Yourself & Then Contact A Cool Agent
Below is a link to a page that offers you the ability to complete a real world comparison of what is possible when you compare your local bank rates and our currently favored, featured product offering. You will be astounded at what you can learn from the comparison. in this comparison, you will check the rates you are being offered at your local bank