Future Financial Images

First Year Index Annuity S&P 500 Linked Returns

Monthly Cap Gain-No Loss     0%                   S&P 500          -40.09%

Annual Point to Point                0%                   DJIA                -36.75%

Trigger Method                        0%                   Russell 2000     -37.82%

Monthly AVG                          0%                   NASDAQ        -38.22%

Fixed Interest               2.5%-4.5%                   1 Yr CD               2.75%

Source: Advantage Compendium, Insurance Companies and Bankrate.com  Index sponsors do not endorse index products.       

Your Index Annuities Paid Zero over the last 12 months - How much did you gain?    

Zero return is not a good long term result. However, it looks good when compared to the 40% you would have lost by staying in a market based product.   Like a mutual fund.   Zero is not that much less than a bank CD at 2.75%.

You gained in other ways:

• Peace of mind knowing your principal and any previous gains are protected from market loss.
• Gained a market advantage because many index annuities “reset” the starting point for next years gain at 40% below last year’s.
• If your annuity has a lifetime withdrawal benefit rider you gained a bump in future retirement income.

An index annuity provides gains even when standing still and is commonly referred to as a safe money place.