How Equity-Indexed Annuities Lessen Your Risk



How are people feeling about the stock market these days? Ask that question a year ago and you'd get responses bordering on ecstatic; ask now and the reply is generally much more subdued. First the new economy goes bust (although experienced investors knew better than to put all their eggs in that basket), then we enter a full-fledged recession helped along by a national tragedy. A few months later we get the cherry on top: a multi-billion dollar corporation declares bankruptcy after, basically, getting caught in a lot of lies.

So how do we feel about the stock market? Investment has become almost a patriotic act. How can we safeguard our future when our present seems so unstable, and how can we make our money grow without adding more risk to our plates? By checking out dependable investment options with a sound history of weathering economic turbulence, we can bolster our own feelings of financial security, and one place to look is the insurance industry. Annuity products are offered by licensed insurance companies, and have an impressively stable pedigree.

Equity-indexed are annuities which offer a guaranteed minimum interest rate, and whose performance is linked to the growth of an equity index (like the Dow or S&P 500). Because the annuity offers a guaranteed minimum interest rate, your principal investment is not subject to the fluctuation of the market. In other words, you don't lose money if the market plummets.

Equity-indexed annuities allow you to realize the promised profits of the stock market, without paying for its mistakes with your investment.

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