A Virtual Risk Free Investment?

Do you know what an Equity Indexed Annuity is? Most people have not heard of an EIA, so you are in good company.

An EIA guarantees you will NOT lose money. Essentially, it can be called a "Risk Free" investment.

Is your mutual fund risk free? Absolutely not.

WHAT MAKES AN EIA DIFFERENT

While mutual funds have a long track record, you know you will receive 100% of the gains and losses.

In an EIA you earn a percentage of the gains and you will NEVER lose money.

You are completely on the hook in a mutual fund.

The EIA invests your money into a particular index, such as the S & P 500, the Russell 2000 or other index.

An EIA is a partnership between you and the insurance company. They guarantee you no losses and you share the profits when the fund does well.

Sounds fair, right?

An Equity Indexed Annuity uses a "participation rate" to determine how much of the profit you share with the insurance company. Generally, you get to keep 70% or higher of the profits, depending upon the contract.

Are you willing to give up a piece of the profits to have a guarantee of NO losses? In this day and age alot of people are learning the EIA's are not a bad product to put their money into.

Especially when you consider the coming baby boomer retirement coming in the next few years. If you are concerned about the impact on our economy, an EIA may give you some level of comfort with its guarantee.

Phoenix Annuity