Seniors on fixed incomes face a unique problem. Where do they invest their savings to get maximum return on investment with limited risk? Some of the traditional places like CDs and Treasury Notes are extremely safe, however the yields tend to be very low. Stocks and Mutual Funds while offering a potential for a higher yield have a risk factor that most seniors find unacceptable.
What if you knew you absolutely positively could not loose, Would you invest in the stock market? Imagine if their was a way that you could enjoy the upside potential of the stock market with absolutely no downside Risk, would you be Interested?
Equity Indexed Annuities may be the Solution you are looking for. Many insurance companies are now offering Equity Indexed Annuities. These annuities allow you to mirror the gains of popular stock market indices like the S&P 500 or the Dow Jones Industrial Average while not loosing any of your investment capital.
In simple terms if the stock market goes up your Annuity also goes up but if the stock market goes down your Annuity does not loose any value. An Equity Indexed Annuity is not an Investment in stocks or Mutual funds instead it is a way the Insurance allow your Investments to mirror the gains of the stock market with no downside risk.
Many Popular Equity Indexed Annuities are set up using a monthly tracking Method. Once a Month the insurance company will look at the stock market index to determine the gain or loss. If the index goes up 2% then they put a plus 2 on your scorecard. If the index goes down 4% then they put a -4 on your score card. At the end of the year the Insurance company totals your scorecard for the year if it is positive (say 8%) they would then add 8% to your annuity value however if it is negative your annuity value would stay the same. If you started the year with an annuity value of $10,000 your annuity would still be worth $10,000. It doesn't matter if your score card has a Negative 1%, 10% or 99% you will not loose one cent of your $10,000 starting value.
Every year your Annuity Value is reset, Using the above example if you Annuity started the year with a $10,000 Value and your score card shows a plus 8% for the year your Annuity would know be Reset to $10,800 and the process starts again. To sweeten the Pot even further many insurance companies are offering Bonus Equity Indexed Annuities, these vehicles work exactly the same as Equity Indexed Annuities but the insurance companies will add a Bonus of up to 10% to your Annuity. If you place $10,000 to start in your annuity with a 10% Bonus Annuity the insurance account would now add $1,000 making your Bonus Equity Indexed Annuity now worth $11,000. In addition you could receive this 10% bonus for any funds you add in the first 5 years.
With Equity Indexed Annuities from popular insurance companies You can have it all. A way to earn some huge Gains from the Stock market while being totally insulated from any downside risk and a Bonus of up to 10% of all money added in the first 5 Years.
Mike Makler is a Licensed Life Insurance Agent Based out of St Louis Missouri. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page http://ewguru.com/insurance
Copyright © 2005-2006 Mike Makler