Would you like an investment that pays gains based on the stock market, yet helps protect your principal when the market declines? The charts below show how some Indexed Annuities have performed from 1998 - 2005.

Indexed Annuities are long term investment products offered by Insurance companies to directly compete with some of the more aggressive investment vehicles in the marketplace.

They are indexed against a number of things like the DOW, or S&P 500, etc. The beauty of Indexed Annuities is they are indexed against the market but they are not tied to the market. So when the market goes up they go up. But when the market goes down they stay level. Then if the market goes up again they go up again as the charts show.

ALL the up side potential but ZERO down side risk if you invest for the long term. You NEVER lose any of your investment money. Typical returns are comparable to the mutual fund market but some returns can be even higher.

Index Annuities are unlike any product in the marketplace. By legal definition they are a fixed annuity product, but with greater potential returns than those provided with guaranteed rate annuities. Index Annuities allow you to benefit from potential gains when the stock market is up, but also prevent you from being penalized when it’s down. Unlike a variable annuity, the risk of losing your money due to market losses does not exist with index annuities. So even if the stock market were to decline in value, your contract value can never decline. In addition, like all fixed annuities, you’re protected by a lifetime guaranteed minimum interest rate.

For individuals who do not want to take ANY downside risk, Index
Annuities are one of the best options currently available.

It’s not every day that you find the opportunity for potential growth with true safety in the same financial vehicle. Usually investors are compelled to make one of two choices, either they give up a degree of safety in exchange for a greater potential for growth or they accept less growth in exchange for a higher
degree of safety. Thanks to an innovation in the insurance industry, you can have the potential high returns available in the stock market and the security of a guarantee—it’s called an Indexed Annuity.

Index Annuities are excellent alternatives for investors seeking safety in a low interest rate environment or a volatile market. Here’s how they work, your return is based on the increase of a stock or index, such as the S&P 500.1 If stocks rise, you benefit from the increase. If stocks fall, you do not lose any money, most contracts guarantee a minimum return, typically 3.2% This is what makes these newer products so attractive to retired persons and to those approaching retirement.

Now, imagine this scenario: Suppose you take a trip to Las Vegas for a week and we decide to make you the following offer. You can gamble at one of the casinos as much as you like for the entire week and we will guarantee you in writing that no matter how bad you do you will not lose. In fact, we guarantee that you will walk away from the tables with no less than what you started with, plus some interest. If you win, you get to keep the winnings.

Would you take us up on the offer? We imagine, given that opportunity, you would load up with casino chips as soon as possible. So, what’s the catch? You can’t lose a dime, but the catch is, you have to play for the whole seven days, otherwise you may have to give back a small portion of your chips. In other words, if you invest with the intent to hold your investments for some time down the road, index annuities can be a powerful investment. This brief example is simplified, but in very basic terms, this is the concept behind index annuities.

Obviously, there is no such thing as a free lunch, so the company that issues the annuity will limit the maximum returns that you receive from a rising market in return for the downside protection they provide. This limit depends on the particular indexing method that the annuity company uses. The most common method used to limit returns is something called the “participation rate.” For example, the insurance company may set the participation at 90% (some companies are as low as 50%), which means the annuity would be credited with 90% of the growth experienced by the index. If the index gained 10%, your gain would be 9% for that year. Essentially, you’re trading 100% of the market risk in order to receive a share of the market gain.

Indexed Annuities go by a few different names. Indexed Annuity, Equity Annuity and Fixed Index Annuity. Here is a short YouTube clip that talks about how and Indexed Annuity Works. Contact your Financial Coach for more details.

3rd Party Index Annuity Information
Jack Marrion – Guru of Index annuities
http://www.indexannuity.org/

Indexed Universal Life - A Safe Place to Grow Your Money TAX FREE! How does an Indexed Universal Life Policy compare to other popular investment vehicles? The following link shows a great chart that compares them side by side. IUL Versus Other Financial Alternatives.   Below are a few policy examples that show how an IUL could grow when taken out on a 5 and/or 10 year old and the premium was paid until they were 21 years or 45 years of age respectively. These product quotes are for agent use only and must not be presented to a prospective client unless accompanied with a complete illustration*. Click on the Dollar amount below to view the printout.   5 Year Old 5 Year Old 5 Year Old 10 Year Old 10 Year Old 10 Year Old 21 Years $150 a mo. $300 a mo. $600 a mo. $150 a mo. $300 a mo. $600 a mo. 45 Years $150 a mo. $300 a mo. $600 a mo. $150 a mo. $300 a mo. $600 a mo.

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to get more information on this and other great products!
 

*All financial scenarios displayed on this site are examples ONLY and your policy or product can and may vary from the examples given. Please consult a licensed professional for a personal financial analysis.