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Index Annuity, Indexed Annuities and Fixed Index Annuity are all generic names for this type of NO RISK Fixed Annuity.

Index Annuities allow you to Earn Interest Annually Based on a portion of the Upside movement (Gains) in an Equity Stock Market Index such as the S&P 500, which is the most often used (other indexes are available even within the same annuity) with NO DOWNSIDE RISK and COMPLETE SAFETY.

Fixed Index Annuities give you the OPPORTUNITY to EARN 30% to 50% more in Interest than any current CD, Treasury Bond, Mortgage Bond or Corporate Bond that you can buy now (at this point in time) and hold for the next 6 to 14 years. ----- And you can do it without RISK of a decline in account value and without Risk of Loss of any Interest Earned along the way and NO COST! -----And this Interest Earned will Compound and Grow Tax Deferred!

The Right Index Annuity at this moment in time is a Fantastic place to be going forward (July 2011)! In the next 10+ Years the right CAP only product may capture the best returns because you get the keep 100% of the upside of the S&P 500 Index up to the CAP. The right monthly CAP may do the same. It would be optimal to have access to both within the same index Annuity.  

 
Fixed Index Annuities are a Great way to PRESERVE Your WEALTH and still Earn an Attractive Rate of Return over time!

The Key to Why Index Annuities Perform so Well is Simple:  THEY NEVER SHOW A LOSS.  Richard Russell, founder and editor of The Dow Theory Letter, put it succinctly when he said, "He Who Loses Least........Wins!"  With Index Annuities we never lose. Index Annuities are excellent vehicles for your financial security. Enjoy the Gain and Eliminate the Pain.

Fixed Index Annuities should be in Everyone's Portfolio!  It is the Only place where you can Make Money and NOT Lose Money trying!

Wouldn't you accept interest earned based on a portion of the upside movement (Gains) of the S&P 500 Index in Exchange for NEVER having to take a Loss or NEVER to have your account value decline?   I would take this deal every time for a large percentage of my portfolio. The conservative portion  i.e. safe, balanced, conservative growth portion of your portfolio is perfect for Index Annuities. The High Risk portion of your portfolio or  "High Risk Money"  seeking High Potential Return with the acceptance of potential losses by you should NOT be placed in Index Annuities (You need to be directly in the stock market for this High Risk portion).

Index Annuities are great for 401K Rollovers, Pension Rollovers and IRA Rollovers of People who are Ages 50 and Up because you can NOT lose money and you can still Grow the money at an attractive rate of interest over time. Tired of Annual IRA Fees? These annuities have NO Annual IRA Fees. If Fact, they have No Fees at all. 100% of you money goes to work for you.

Please remember time is on your side. The longer you hold, the better you will do in terms of the rate of earned interest. Also remember, you Never have to liquidate to take profits because you can never have losses or give back gains. It's the Perfect Buy and Hold Instrument!


Are YOU using UNSAFE Money or SAFE Money for YOUR Retirement?

 Click Here to Request Personalized Information on HOW to use SAFE MONEY for Your Retirement - Details and Information on Index Annuities.

Click Here for TOP Rated Index Annuities

Frequently Asked Questions:
 
6.Fixed Index Annuities (FIA's) have been in existence since 1995.

Hypothetical Index Annuity Returns - Back Tested on S&P 500

Article Published April 13,2007:  Why Wealthy Investors Need to Explore Other Wealth Protection Vehicles (Click Here to Read).
________________________________________________________

How does an Index Annuity Work?
 
Like all annuities, an Index Annuity is a contract with an insurance company for a specific period of time initially or for which you may choose to hold for life. An Index Annuity tracks a particular Stock Market Index, such as the Standard & Poor's 500, S&P MidCap 400, Russell 2000 Index, NASDAQ-100, Dow Jones IA, Dow Jones Euro STOXX 50,  Lehman Brothers US Aggregate Bond, etc., etc.. One or all of these indexes may be available in the index annuity you purchase. Your rate of return will be a pre-set percentage of the increase in that index in the corresponding index year. There is also a guarantee against losses. The surrender period on an Index Annuity is typically longer than other annuity surrender periods - about 7 to 14 years (some are now available at 4 or 5 years - but remember in order to achieve a higher return you must give it a longer time frame to work just as any other instrument).

Can you give me an example of how the pre-set percentage works?
 
Yes. Let's say that your Index Annuity promises to give you 55 percent of what the S&P 500 Index returns that year. You invest $100,000 on November 1st. By November 1st of the following year, the S&P 500 Index has increased 15%. According to the terms of your Index Annuity, the insurance company has to give you 55% of that increase. Since 55% of the 15% is 8.25%, you will be credited with 8.25% Interest on your original deposit or the beginning account value of that year, in this case $8,250. If the S&P 500 had gone up only 8% for the year, you would be entitled to 4.40% index gain and credited interest on your investment of 4.40% or $4,400.

You say there is a guarantee on the downside. What if the S&P 500 goes Down 30%?
 
Yes, there is a Guarantee on the Downside, which is why investors in Index Annuities are willing to accept only a 55% share of the gains in the S&P 500. In fact, for those who do not want to take any downside risk, the Index Annuity can be a good option. Unlike regular index mutual funds, where you claim 100% of the gains but also Suffer 100% of the Losses, in an Index Annuity your money can only go UP - it cannot go down. If you invest $100,000 in an Index Annuity on November 1st and by November 1st of the following year, the S&P 500 Index has fallen by 30%, you will still end up with $100,000 as an account value at the end of that year. The next year, when the market rises by 15%; you will be credited with 55% of that increase, in this case 8.25% or $8,250. After 2 years you would have a total of $108,250 in your account {Being in an equity mutual fund or index mutual fund you would have LOST $30,000 (-30%) in the 1st year with your account value down to $70,000 and gained back only $10,500 (+15%) in the second year with a total account value after 2 years of $80,500. This is a LOSS of $19,500 (-19.50%) over 2 years in typical index mutual funds or equity mutual funds}.
 
This kind of annuity allows you to share in the upside no matter how high that upside is but effectively protects you from a downturn. Please note: This safety feature is not included in all index annuities, so be sure to ask whether it applies to the index annuity you're considering. You want what is called an "Annual Reset".

The Other Great thing about Down Index Years (Besides NOT Suffering a Loss or Account Value Decline) is that Your Index Starting Point will RESET to the depressed Level. In effect you are always buying the S&P 500 Index near the low in a down year, and are always positioned for future gains. Your index starting point resets each and every year. This is really the important KEY to why Index Annuities will perform better than all other fixed income instruments over the long-term and why "Buy and Hold" truly works with Index Annuities.

Click Here for TOP Rated Index Annuities

*** Not being Caped on the upside is very attractive; this specific method is called an "Annual Point-to-Point Participation Rate Only" crediting Method. At times, the entry point (Time of Purchase), the Participation rate is very low. When this occurs CAP Only methods at around 8 to 11% or monthly CAP's above 2.75% can be more attractive over the long-term. Other Examples of how this method works follow:

Example A: Lets assume an investment of $100,000, the Participation Rate is 55% and this is Annual Point-to-Point with No Cap or Spread. Lets also assume the S&P 500 Index increases 40% for the year.
 
Your Index Annuity would be credited with 22% or $22,000 of Interest (40% X .55 = 22% or $100,000 X .22 = $22,000). Your New Account Value would be $122,000 and is guaranteed never to go below this amount. This guaranteed floor is reset each year you earn interest.

Example B: Lets assume an investment of $100,000, the Participation Rate is 55% and this is Annual Point-to-Point with No Cap or Spread. Lets also assume the S&P 500 Index increases 10% for the year.
 
Your index annuity would be credited with 5.50% or $5,500 interest (10% X .55 = 5.50% or $100,000 X .055 = $5,500). Your New Account Value would be $105,500 and is guaranteed never to go below this amount. This guaranteed floor is reset each year you earn interest.
 
The following year, in example A and B, any interest earned would be calculated on your actual account value for that year: $122,000 and $105,500, so your money compounds interest just like any other savings instrument.
 
This design will give you more interest when the Index has a big percentage gain for the year. In my opinion, this is the Best Indexing Method, along with the uncapped monthly average second. I say this because in order to obtain the highest rate of return over time it is very important to capture as much of the upside as possible in big up years. In single digit up years it will give you less than a "CAP only" product would. Please contact us for our for Index Annuities with this design. They are very hard to find right now.
 
The "Point-to-Point Participation Rate Only" crediting method is a very simple method to calculate and very easy to understand. The participation rate may change once each contract year and may be higher or lower than the initial rate. The participation rate is declared each contract year by the insurance company, and the primary driver is what it costs the insurance company to go out and buy options on the underlying market indexes to provide you the upside interest earning potential. This is the method I highly recommend and we have several available, please contact us for all the details.


Are there any other safety features attached to index annuities?
 
Yes. Index Annuities typically come with an overall guarantee as to the return over the life of the annuity. No matter which available index you choose to track, in the long run you can't lose. Why? Because once your surrender period is over, the insurance company typically guarantees that you will get back 100% of your initial deposit plus a minimum return (Varies by index annuity & company) or the accumulated value / actual account balance of your account, whichever is greater. If you invest $100,000, the worst-case scenario will leave you with $121,000 at the end of the 7 year surrender period in one example. Based on what was explained above, the probability is high that your accumulated value / actual account balance will be higher than this overall minimum but it's a good feature to have anyway.
 
Again, if you are willing to give up some of the upside potential of being 100% invested in the stock market, an index annuity can help you protect yourself against downside risk, both in the short term and the long term.

How do I know if an Index Annuity is right for me?
 
If you do not want to take any risks and want the opportunity to earn more interest than other fixed income instruments available, a good index annuity may be right for you.
 
Click Here for TOP Rated Index Annuities

 
Fixed Index Annuities (FIA's) have been in existence since 1995.

Buy all of your Annuities Here!

How Fixed Indexed Annuities Work

Let me describe the benefits of an Fixed Index Annuity in other terms that all of us can understand.  

An index annuity is a fixed annuity. It has the same advantages as a fixed annuity, it has the same disadvantages as a fixed annuity, and it has the same legal status as a fixed annuity; meaning it is not a security {An Index Annuity is NOT a Variable Annuity (In Variable Annuities Annual Fees of 2% to 3.00% are common), Not an Index Mutual Fund or Not an Equity Mutual Fund}.
 
An index annuity is a fixed annuity with interest crediting linked to the movement of an equity stock market index. Over time, an index annuity is designed to compete with other safe money places and in fact will beat these other safe money places.
 
An index annuity protects against loss of principal and interest earned from Market Declines. The cost of this protection is part of the future potential of index-linked gains. An index annuity does not eliminate uncertainty, but simply removes the risk of loss from the equation, improving the odds of receiving a competitive return by making it less likely that one will try to time the market by buying and selling at the wrong times.
 
Index annuities are designed to provide a return somewhere between stock market vehicles and savings instruments and they've been performing as intended.
 
At today's rates and under most back testing "what ifs" index annuities would deliver 40% to 60% of stock market index performance. If consumers get roughly half of the market index return is that bad? I would expect roughly 2% higher than CD rates in a similar kind of interest rate environment, and that extra 2% which is more than a bank pays should be acceptable to most consumers.


Hypothetical S&P 500 Back Testing Data with three Participation Rates of 55% / 65% / 75% - Annual Reset 1 Year Point-to-Point crediting method for the following periods
ending July 14, 2007:

Last 20 Years: Hypothetical #1
Last 15 Years: Hypothetical #2
Last 10 Years: Hypothetical #3                       Click Here for a List of TOP Rated Index Annuities
Last 5 Years:   Hypothetical #4
20 Year from 1950 to 1970: Hypothetical #5
20 Year from 1970 to 1990: Hypothetical #6
1990 to Present: Hypothetical #7


5-10-2011 New Hypothetical - Last 20, 15, 10, 5, 2 Years... CLICK HERE!

{Interest Earned and credited each year is = to the increase in the S&P 500 Index from start date each year to end date 12 months hence X the Participation Rate :: Annualized Return for the full period of time is under the Annualize Return Column in the bottom row for each hypothetical participation rate. Please also read the yellow tags on each page.}

New Charts: (09/30/1998 to 09/30/2008) - CLICK HERE for CHART #1!    CHART #2     CHART #3    CHART #4


11/19/2008 Note: Due to this stock market environment and economy plus what I expect going forward Long-Term (5 to 10 Years), I believe a CAP Only Crediting method will be the best method for earning interest and providing the highest return possible for this period of time in index annuities. Now don't just go out and buy any CAP only Index Annuity. You MUST buy the Index Annuity that gives you the HIGHEST CAP's along with other choices in the same index annuity for down the road. We have that Index Annuity and it does NOT have a bonus. Very few others will be forthright and honest enough to offer it to you. I will! Because I put clients first all the time every time. If you listened to stock brokers, financial advisors and financial planners who preached a buy and hold philosophy in a diversified portfolio of securities/mutual funds/index funds for the last 11 years like it was a religion, it has cost you greatly. Diversification meant NOTHING in these two bear markets. Everything went down... everything! EXCEPT... Fixed Index Annuities! Did they tell you to sell in 1999 or early in 2000? Did they tell you to sell in the Spring of 2007 through May of 2008? NO, well that is because they never tell anyone to sell.

Click Here to Request Personalized Information on HOW to use SAFE MONEY for Your Retirement - Details and Information on Index Annuities.


Click Here for TOP Rated Index Annuities


 



What is the Real Risk of Investing in the Stock Market?


(To Fully Understand this Market RISK explanation You Must Read all 4 Pages in Order.)



Let me start out by saying that everyone should have some Percentage of his or her portfolio directly invested in the Stock Market. The question is ... what Percentage? I'm afraid most have forgotten, yet again, the lessons learned in 2000, 2001 & 2002. It seems every 10 years or so, lessons learned are forgotten. Most People are disrespecting the REAL RISKS involved here, especially those age 50 and older who should begin to cut back to 50% or less, and at Age 60 cut back to 40% or less (Depending on your Risk Tolerance for how much less). For this Growing "SAFE Percentage" of the Portfolio there are attractive alternatives that should be utilized, and this is another attempt at explaining the Benefits of these Wonderful Alternatives.
 
Investing in the Stock Market means: Investing in Individual Stocks, Index Funds, Managed Mutual Funds, Exchange Traded Funds and Variable Annuities and Holding 5 Years, for this example.
 
Your Investment Advisor, Broker or Fee Based Advisor (CFP/Certified Financial Planner) always talks in Percentage Terms and NOT ACTUAL DOLLAR Terms.

Ever Wonder WHY? 

Do you really understand what these Percentages mean?

Do you Really Understand the RISKS you take?


Questions:
 
If you start out with $100,000 fully invested in the Stock Market and for each of the next 5 years you had the following Returns (Assuming no Management Fees)(This whole Example is hypothetical to illustrate Real Market Risk - the RISK that most have already forgotten)(You should always think long-term to obtain the best performance and 10 Years should be the minimum).
 
Year 1:  +10% ...UP
 
Year 2:  +10% ...UP
 
Year 3:  -(40%) ...DOWN
 
Year 4:  +55% ...UP
 
Year 5:  +10% ...UP


What do you think your Actual Account Value would be at the end of 5 Years?
 
What do you think the Annualized Return would be?


Take a Guess and then Click Here for the Answer.










 

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