Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Features And Issues Of Equity-Indexed Annuities

Wednesday, February 22, 2012 - 6:09 PM
The easiest description of an equity-index annuity is a financial product that you shouldn't touch with a 10-foot pole. If you want to learn a little more, this US News article is worth the read. It lists some issues of these annuities such as high commissions for the financial advisers. It also describes the features that should be understood if you're trying to compare these annuities like participation rate and the method of tracking the index.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,611
1. Wednesday, February 22, 2012 - 7:56 PM
There are radio shows on week-ends, that are actually infomercials, that tout these products. They make them sound so good that I'm sure they hook a good number of retirees to willingly hand over their funds to these sales people.
ShorebreakShorebreak2,671 posts since
Apr 6, 2010
Rep Points: 14,501