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Can I really get stock market returns using a fixed annuity?

April 26, 2017Annuity fixed returns Stock Market

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Can I really get stock market returns using a fixed annuity?

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No; equity linked/indexed fixed annuities will never be able to yield direct stock market returns. If they did, the life insurance companies would have a hard time staying in business because in a fixed annuity, the funds are guaranteed to credit a positive interest rate each year of the contract, thus protecting the funds from market corrections/drops. To offer true financial safety and direct participation in the market at the same time is impossible.