Are Fixed Index Annuities A Good Investment?
Are Fixed Index Annuities A Good Investment? This powerful tool was designed to to meet long term financial retirement needs.
Selecting the best vehicle for accumulation for your retirement can be a difficult undertaking. There are numerous choices out to choose from. While you may want safety and a guarantee of protection for you investment and credited interest, you also want the potential for higher rates of returns that come from being linked to the stock market that is unavailable to a fixed rate annuity.
The choices used to be either low risk with low rate of return or higher rate of return potential and high risk to your principal. Now you can get the best of both in the fixed index annuity, market linked growth with no risk to the principal. When the stocks rise, this reflected in the growth of the annuity. If the stocks fall, investors are protected against the fall affecting the principal. This new breed of annuity is a concept created to assist you in meeting your retirement needs.
The most common problem with fixed index annuities is the surrender period. This refers to the length of time that the investor has to leave his money with that insurance carrier to avoid being penalized for making an early withdrawal. Are Fixed Index Annuities A Good Investment? You might answer no if you were looking at profitable stock market year that did not reflect in your fixed index annuity. This might happen because your money is not actually invested in the stock market, merely liked to it. It would be a good idea at this point to remember that the years that the stock market is floundering that your investment is protected from the worst of it.
For those who want a guaranteed income for retirement that was tailored for their individual needs, the answer to the question “Are Fixed Index Annuities A Good Investment?” is yes, they are a good investment choice.
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