Which is a Smarter Choice: Mutual Funds or EIA's?
When looking into investing in the stock market, one popular choice has been mutual funds. Increasingly however, many investors are opting for an equity indexed annuity instead. There are many good reasons for this growing popularity of equity indexed annuities.
An equity indexed annuity or indexed annuity is a savings option where clients are given the ability to link their annuity accounts to a stock market index such as the S&P 500. Those accounts then earn interest based on the percentage change to the linked index. Equity indexed annuities are a smart way to increase ones earnings while guaranteeing their principal. When depositing funds into an equity indexed annuity clients earn interest when the index increases, but do not suffer from losses if the index declines.
Mutual funds are professionally managed accounts consisting of several investors who pool their money together to purchase stock in a large number of different companies. When investing in a mutual fund, clients are depending on someone else to make their investment decisions that will hopefully result in a good return. Unlike indexed annuities, if a mutual fund loses money so do the investors. If an investor wants to sell their shares from the mutual fund there is no guarantee they will make a profit or even get back the amount of money they had invested.
If you are considering an investment in mutual funds, or if you already own mutual funds and are interested in exploring a principal protected option, contact Annuity Advantage today to find out more about our Equity Indexed Annuities. It is our goal to aid our customers in making the best decisions for their individual needs. By offering a wide range of annuity options to our clients and analyzing the pros and cons of all the alternatives, we assist people in saving for their futures every single day. To receive more free information about our equity indexed annuities, please fill out the form on this page. At Annuity Advantage we take pride in building trusting relationships with our clients; the information submitted in this form will be kept secure and confidential. After submitting this form you will receive a copy of our free brochure via email and can look forward to speaking with one of our Annuity Specialists shortly.