1. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question!! Many people become confused by this type of annuity because of it's connection to the stock market. The annuity does have it's performance linked to the performance of the market, but it does not involve any particular stock. Your annuity gains based upon the gains that the aggregate market gains, not ant particular stock. For example, your annuity bases its gains on the S&P 500. If the S&P 500 rises from point a to point b, your annuity credits your fund with a promised gain. You have not purchased any stock, nor are you participating in the market. You are just "gambling" on its performance. Since there is no stock investment, it is not considered a security, unlike a variable annuity, which does invest in the market, and therefore is considered a security. I hope that helps, thanks for asking!
    Answered on July 28, 2014
  2. Did you find these answers helpful?

Add Your Answer To This Question

You must be logged in to add your answer.

<< Previous Question
Questions Home
Next Question >>