Equity Indexed Annuity is a Fixed Annuity now known as an Index Annuity
May 24th, 2006 at 9:38 am
An equity index annuity is a fixed annuity.
The reason equity indexed annuities are obsolete is that
the
fixed annuity means your premium earns a minimum guaranteed
interest rate. In other words you have two interest rates,
a guaranteed rate and a current rate determined by an
external index.
The word equity has been dropped from the description of a
fixed indexed annuity as to eliminate the confusion of
insurance terms among consumers and agents.
A fixed index annuity is not an equity, therefore that term
has been eliminated. Indexed annuities are the new and
improved terminology. The word annuity is Latin for income.
Annuities existed long before there was a tax code. The
word
deferred meant income later and still does today.
You can buy a fixed index annuity and wait 12 months to
determine if any interest has been credited and then
withdraw the previous years interest over the second year
all at once, semi-annually, monthly even direct deposit to
your bank account.
This is how to use a fixed index annuity with a current
rate
based on an index strategy you chose, to pay you a current
income, in other words you can defer your income or
interest
payment for twelve months.
The safety and security of fixed indexed annuities that
provide current income is a popular choice for an IRA,
4O1k,
and 4O3b rollover at retirement.
Jeff McLeod is a fixed index-linked retirement income
annuity specialist.
To get a copy of the Buyer\'s Guide visit
http://www.HappyRetiree.com.
1-800-286-1812