Fixed Indexed Annuities - Are They A superb Investment

Are fixed indexed annuities a superb investment decision for you? Maybe! It genuinely relies upon in your scenario.

First items fixed index annuities first...

What on earth is a set indexed annuity? Most common mounted annuities function a great deal like CD's. The difference along with the indexed annuity would be that the fee of return is just not set.

How can an indexed annuity pay out?

The curiosity is paid based on the overall performance an Index. There are plenty of but let's utilize the S&P 500 index for example. If the index goes up 15% theoretically you would earn 15%. If the index goes down, you would earn 0% but have no loss. The difference comes in because very few indexed annuities actually get the job done like this. For instance, you could have a cap - index up 15% you earn 7%. The cap was 7%. This is just one example. There are actually literally hundreds of different variations as to how the curiosity is actually compensated out. Be sure to read the details.

Are preset indexed annuities good even with all of these different payment options? It's possible! It is dependent in your circumstance. There are actually so many options now that they are looking more like a toolbox, a special tool/annuity for a special job/financial problem. If one of the annuities fits your situation then it can be a near perfect financial investment with no downside risk. Investing in an annuity that does not fit your circumstance can be a financial disaster. Financial disasters are not specific just to annuities though. The same can be true with any type of expense.

When are preset index annuities excellent? Only if:

1. You have plenty of time until you need access to your money as compared to the surrender charge schedule. Be sure to read the surrender charge schedule thoroughly.

2. You need income or safety along with potential for growth.

3. You understand that it will very likely not perform as well as the general market when the market is excellent and will likely do much better (with no losses) when the market is not so fantastic.

4. You understand that fascination is credited only one time per year.

5. You understand the bonus features.

Also be sure to check the rating of the insurance company. Ratings matter! To learn about insurance company ratings just search insurance company ratings on any search engine to learn about how they get the job done. Then ask what the rating of the insurance company is and ask if that is the top rating. There is no reason to purchase the same annuity from an insurance company with a lower rating especially if there is no real change between the annuity details.

One last thing to check on would be to look for your state guarantee program. Try a search engine search of - (your state) guarantee limits insurance companies. DO NOT go over these limits on a per contract basis.

Be sure to seek competent advice from your advisors and insurance agents before making any changes to your expense portfolios.

Keith helps all types of investors make sure their investments are safe and secure. He also helps his clients increase their retirement money sometimes doubling or even tripling their monthly income!