Safely Share in the Stock Market’s Performance with Equity Indexed Annuities

Do you love investing in the stock market? Are you getting older and are starting to worry about the market’s fluctuations? Many investors in or nearing retirement are beginning to put the brakes on aggressive stock market investing. However, it’s difficult for these stock market junkies to let go of their market passion. With equity indexed annuities, stock market enthusiasts can share in the market’s gains while not putting their principal or interest earnings at risk.

Equity indexed annuities are insurance products that, in exchange for a lump sum premium deposit, the company ties your annual interest earnings to the performance of a particular stock market index, like the S&P 500. When the market index goes up, you share in the gains. And there are no funds or individual stocks you need to worry about because your money is not actually invested directly in equities and is at all times, fully guaranteed by the issuing insurance company. When the market falls, your interest earnings fall too, but only for that year. Your previously credited interest earnings and your original principal are locked up, safe and sound. Even better, equity indexed annuities offer a minimum rate of return on your premium deposit. So if the market index that your equity indexed annuities are associated with declines, you’ll still be paid an interest return on your deposit.

However, to offer such an attractive product, annuity-issuing insurance companies must put a cap on the interest that you may earn on equity-indexed annuities. If the market does particularly well, and your market index gains 12% for the year, you may only receive a gain of say 10%, depending on the equity indexed annuities’ terms. By placing a cap on customers’ policies the issuing companies can ensure that they cover all customers’ equity indexed annuities contracts.

Equity indexed annuities also require term lengths to offer such a great product. Your money is locked up for the duration of the term and you will face stiff withdrawal penalties that eat into your account’s profit if you exceed the penalty free withdrawal provisions. So it is important to only use money that can be committed for a period of time to buy equity indexed annuities.

Do you want to continue gaining in the stock market while preserving your original principal? If so, then contact the Annuity Specialists at 1-877-519-8599 to start the annuity-buying process today.