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An equity-indexed annuity is really a mixture of a fixed along with a variable annuity. The advertising pitch generally goes some thing like this: Equity-indexed annuities provide you with the very best of each worlds.

Assured return: As having a fixed annuity, you get the low-risk appeal of a assured minimum return (generally 2% to 3%).

With some upside: But, as having a variable annuity, you also possess a shot at greater gains when the stock marketplace rises, because an equity indexed annuity's return can also be tied towards the overall performance of a benchmark index, like the Regular & Poor's 500.

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