The Truth About Indexed Annuities

There’s a lot of misinformation being spread about indexed annuities by traditional print media and online financial advice columnists. Unfortunately, some of this bad information may turn you away from indexed annuities, a product that may suit your financial and savings goals. The truth is that for every one article presenting indexed annuities in the fair and balanced light they deserve, there are many more negative articles to counter this good information. Any good annuity salesperson will be the first to tell you – indexed annuities are not for everyone. However, a few bad apples have seemed to spoil the bushel, and a few unethical salespeople have turned the media against indexed annuities.

Just to reiterate – indexed annuities are not for everybody. Indexed annuities are best for those looking to add another dimension to their retirement portfolio. For customers who have ample liquid savings, and who would like to grow a portion of their money by tying their interest earnings to a particular stock market index’s gains, indexed annuities can be a good choice. An indexed annuity is not suitable, however, for any one person’s entire life savings or for a person’s only source of liquid cash. To offer such attractive returns, indexed annuities “tie up” your funds for an extended period of time – anywhere from four to 14 years. Therefore, indexed annuities are best for those looking to invest funds for the long term, a fact that is usually not accurately presented by the media.

But for those who are willing to tie up a portion of their savings for long-term growth, indexed annuities can certainly fit the bill. All taxes on interest earnings within the annuity are deferred until withdrawn. This means that you won’t be paying taxes on your earnings until far, far down the road – hopefully when you are in a lower tax bracket. Indexed annuities also operate outside probate; if you die while owning an indexed annuity, they transfer directly to your named beneficiary. Less worry for you!

Are you starting to see why indexed annuities can be a great fit for some? Call 1-800-239-0356 today to speak to an Annuity Specialist who can answer your questions about indexed annuities and who can assist you in purchasing this great financial product.

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