So, how have equity indexed annuities actually performed?
Jeff: “Some specific history here might be helpful This indexed annuity investment returned over 17% last year. And, as of the beginning of the year, $100,000 invested at the beginning of 1999 was worth over $135,000, while the S&P 500 was still well under water. Also, all these gains are tax-deferred, similar to an IRA.” So these things are called equity indexed annuities, huh? I don’t know a lot about annuities. But I used to hear that fees were high. What’s the story with annuities? Jeff: “There is generally a ‘surrender charge’ that usually declines every year and eventually disappears in seven years’ time, in the equity indexed annuity I’ve been recommending. If you can hold for seven years, then you will have gotten most of the upside and none of the downside of the stock market, with the only ‘cost’ being the fact that your upside was limited to 2.7% in any month. That’s a fair trade-off to me. For the full story, you might want to check out Jack Marrion’s website” I did. Jack M
