Stock Market Growth with No Market Risk
Is this really possibly? Yes, via an ING, Fidelity & Guarantee, American Equity or Allianz Equity-Indexed Annuity.
What are the Pros and Cons of an Equity Indexed Annuity?
There are several pros and cons of an equity indexed annuity. An Equity-Indexed Annuity is a unique class of annuity that uses an equity index as the basis for calculating the interest that will be credited to the annuity policy. It has all the guarantees of annuity contracts plus the potential of stock market returns with no downside risk.
An Equity-Indexed Annuity gives you the ability to lock in stock market gains when the market rises, and protect your investment against losses when the market falls. Your Equity-Indexed Annuity’s performance can be directly related to the rise in one of several stock market indexes, such as the S&P 500. Yet, if the market performs negatively, you do not lose any of your money. In addition, an Equity-Indexed Annuity GUARANTEES a minimum annual return (typically 1-3%), even if the stock market goes down during the time you are invested.
You can also fund your IRA with an Equity Indexed IRA Annuity.