Indexed Annuities

Indexed Annuities

By David A. Kauwe, CLU, ChFC, LUTCF, RFC, 
Associate with Consultus, LLC

Confused about Annuities? Fixed, Deferred, Immediate, Indexed, Hybrid, Single Premium, Flexible Premium, Caps, Fees, Highwater Mark.

What’s it all Mean???

Today I’d like to give you a simplified overview of the Indexed Annuity.

These Annuities are issued by Insurance Companies. They are tax-advantaged products that defer taxes on the interest earned until some future time that the monies are withdrawn.

The early 20th century comedian Will Rogers once said, “I’d rather have a return of my money, then a return on my money!”

Since the beginning of this century we’ve seen some crazy ups and down as a nation financially. The tech boom, 911, sustained growth, the housing crisis, much like a yo-yo!

Thousands have seen their 401-K’s reduced to a pittance of what they once were. We have more Seniors having to continue working or go back to work because of the losses they incurred during this time. What if they had had a product where when the market was doing great, they could have benefited, and when the market was tanking, they could have breathed a sigh of relieve knowing that their accounts would not have lost a single penny! This is the exact results that one will receive if they purchase an Indexed Annuity.

These products tie their returns to your choice of any of the Financial Indices that are out there; The S & P 500(Standard and Poors Top 500 US Companies), The Nasdaq, The Dow Jones Industrials, The Hang Seng Index, The Euro Stoxx Index etc. Because they are tied to these Indices and not the actual individual stocks and bonds, the principal is never at risk. When the market is up, they participate in the rise in equity of the market, hence the name Indexed Annuities. In a down turn in the market, the balance of the accounts do not earn earnings, but more importantly they DO NOT LOSE a Single Red Cent either.

These make a perfect product for the individual who wants to participate in the Upside Potential of the Stock Market, and NOT have the Downside risk of Losing Money! These products certainly are worth looking into to protect your hard earned monies!

David A. Kauwe CLU ChFC LUTCF RFC is an Associate with Consultus LLC, a Financial and Estate Planning Firm located in Durham, NC. dave@hawaiiandaves.com or at (919) 698-8832 cell.