The Equity Indexed Annuity Expert

     After spending many years in the financial services business, I've just about seen it all when it comes to pensions, retirement plans, 401k plans, traditonal IRAs, SIMPLE IRAS and their investment choices.

     I've often also been employed as a consultant by law firms to evaluate or design structured settlement annuities for personal injury settlements.

      The Equity Indexed Annuity is the  product that I like best of all for long term savings. While classified as a "fixed" annuity in the legal sense of the word, the only thing fixed about it is the safety of your money. The term "fixed" is meant to differentiate it from a "variable" annuity, which is a security sold by stockbrokers and one of the worst products on the market in my opinion. They're almost always loaded with hidden fees, unlike a fixed Equity Indexed Annuity. ( EIA)

     The EIA is NOT a stock or bond mutual fund, not a variable annuity, nor an instrument that participates directly in stock, bond or other equity investments. Unlike mutual funds and stock or equity investments, the EIA ( equity indexed annuity) is an annuity with important and stable insurance features, such as the tax deferral*, death Benefit, and annuitization features. They also differ from variable annuities in that they offer protection from market loss, a feature rarely found with variable annuities. So, if you're looking to protect your cash and earn an above average interest rate, minimize taxes (when possible), and not ever lose a dime, nor a minute's sleep, the equity indexed annuity is something you might consider for your retirement account, rollover IRA or other long term savings.

Here are the hightlights of a high quality fixed annuity:

•  Safety of principle. While in the accumulation phase, there will NOT be any fluctuation in the value of the annuity's value other than compound interest being added to it.

• There are not any fees, charges or hidden amounts taken from your account each year unless you make an early withdrawal, which will be addressed later on this site.

• The EIA provides a safe, steady and secure monthly income that you CANNOT ever outlive.

• If using a non-qualified EIA, during the accumulation phase, before withdrawals begin, the interest earnings are compounding on a tax deferred basis*, allowing your annuity to grow more quickly. Of course, retirement plan Annuities enjoy tax deferral too.

• Normally, the interest rate is much higher than what you would receive from a bank certificate or savings account. There is always an underlying lifetime MINIMUM interest rate Guarantee for the EIA.

     If the annuitant's death occurs prior to withdrawal, the annuity will pay the entire balance to his named beneficiary, AVOIDING probate in many cases.

     If we add the "Equity Indexed" feature to a fixed annuity we get all of the above, plus:

• The interest rate crediting, at the annuity owner's option, can be linked to a major stock market index, such as the S&P 500 index ** without fear of losing any of the principle balance, should the market lose ground..

     In other words, if you choose to track the S&P 500 index ** with your equity indexed annuity , your annuity will take advantage of most stock market gains, yet NONE of the market's losses. That's right, you can not lose value in an EIA if the stock market tanks, like it's so famous for doing.

~The EIA Expert~

 Equity Indexed Annuity FAQs

 * Annuities owned by trusts or other entities do not generally enjoy the tax deferral feature. We do not give tax or legal advice. Please consult your tax or legal advisors for your particular circumstances.

** The trademark " S&P 500" is owned by McGraw-Hill and is in no way affiliated with this website, it's owners nor it's hosting service. Any references to it on these pages are for illustration and informational purposes only.