Index Annuity Problems

Find the present value of an annuity with periodic payments of 2000 for a period of 10 years at an interest rate of 6 discounted semiannually by factor formula.

Index annuity problems. There are at least 4 reasons not to purchase a fixed indexed annuity. Many indexed annuities have a minimum interest guarantee. An advisors recent experiences with clients in Equity-Indexed Annuity EIA products and why more regulation may be needed for an industry so lacking in self-policing bad firms and agents.

Based on the contract terms and features an insurance company may credit your indexed annuity with a lower return than the actual indexs gain. 888 400 5759. Jeff Voudrie wealth manager introduces his series on the dangers associated with equity indexed ann.

We want to invest it for ten years. Your money is safe from market ups and downs. Still they are complicated.

A fixed index annuity provides steady payments that are based on the performance of an underlying index. One of the most significant problems with FIAs is the surrender period -- the length of time the account owner must keep his funds with the annuity carrier to avoid additional fees and penalties for. Fixed index annuities offer some of the upside of.

For starters if you change your mind and want out of the investment there can be sizable surrender fees. Reinvesting money that would otherwise be paid out in tax over an extended period of years is always an advantage. People often refer to indexed annuities as hybrids of fixed and variable annuities.

An indexed annuity also known as a fixed-index annuity is a type of annuity whose income payments are tied to a stock index such as the SP 500. Following are some of the problems with this annuity type. It has a record of introducing innovative Fixed Indexed Annuity products in its business history.