What Are Indexed Annuities?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaTax deferred indexed annuities can have access to domestic and foreign indices which have the potential to generate returns without the losing money based on negative performance. However, like all savings and investment vehicles, annuities have policy expenses, so you could experience a loss in a non crediting year. Indexed annuities have three crediting methods: spread, caps and participating. The most popular indice is the S&P 500. One last point: indexed annuities owners generally don’t participate in dividends.Answered on June 16, 2013+01+1 this answer
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61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaTax deferred indexed annuities are annuity policies that use domestic and/or foreign indices options that can be exercised in positive indexed markets. In negative indexed markets the options are not exercised, but also not debited form the annuity crediting account. Keep in mind that policy expenses are assessed against the count and may result in a negative performance in any one year.Answered on September 7, 2013flag this answer
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