Annuity how do they work
Other People Are Reading
Earnings and Returns
Although your indexed annuity is invested in the stock market via an index fund, you enjoy only a percentage of the growth of that particular index. This is because most annuities don't have a 100 percent participation rate. For example, if the fund your annuity is invested in earned returns of 10 percent last year and your annuity only has an 80 percent participation rate, you would have earned 8 percent. In addition to earning less than you would have by investing the same amount of money in the same index fund within a regular investment account or IRA, you'll still have to pay the high fees associated with annuities--further eroding your earnings. This is one of the reasons some financial experts advise against them for most people.
More Like This
How Does a Retirement Annuity Work?
Indexed Annuity Scams
Why Do People Invest in the Stock Market?
You May Also Like
Equity indexed annuities are annuity contracts that
pay interest on your savings based on the upward movement of the stock market. Only.
How Do Annuities Work. What Are Index Funds? How Much Money to Save for Retirement. Starting an Investment Retirement Account. How.
How Does an Annuity Work. Part of the series: Financial Planning: Annuities. What Is an Equity Index Annuity? Different Annuity Rates.
How Do Indexed Annuities Work? How to Evaluate Annuities; ehow.com. About eHow; eHow Blog; How to by Topic; How to Videos; Sitemap;.
Part of the series: Financial Planning: Annuities. An equity annuity index allows someone to participate in the stock market. How Does.
What Are Fixed Indexed Annuities. Understanding the various ways these financial products work helps consumers prevent investment mistakes. Other.
Work for Yourself; Your Business. Starting a Business; Managing Employees;. Some indexed annuities do not offer a trailing commission at all.
Work for Yourself; Your Business. Starting a. A fixed-index annuity or an equity-index annuity is a fixed annuity contract tied to.
How Does a Variable Annuity Policy Work. Fixed-indexed annuity policies are insurance contracts that pay interest based on the upward movement.
View Blog Post