The Other Problem with the Equity Indexed Annuity

By Tony Bahu

Okay, so here is the other problem with the index annuity. Many agents try to sell it as the 'answer to all problems.' The fact of the matter is, it is not that at all. An indexed annuity is designed to have the potential to capture a little more upside than a traditional fixed annuity can.

Again, many agents claim it is a way to beat the markets...they will severely underperform in a good bull market. Furthermore, they are not designed to capture all the upside. They are designed to give a lower floor and a higher ceiling than traditional fixed annuities. They are by no means a stock market alternative.

So the bottom line is that the equity indexed annuity can be something desinged particularly to fit in someone's portfolio. It has advantages that other annuities cannot offer. It gives the protection of a fixed annuity. And it gives a little more upside than traditional safety vehicles.

All in all, it can be a good thing but it depends on an investor's situation. For someone looking for all the upside and who doesn't care about taking risk and losing money, the index annuity is far from the right choice. For someone who has a small risk tolerance but cares to have a little more upside potential, it can be a good choice.

The most important thing is to understand, any investment is part of a bigger equation. That is the bottom line. And furthermore, research is key. It is important to know what you are getting into. The further side of the spectrum is agents saying that EIA's are a scam. Those guys just don't understand how the EIA works.

Ignorance is Not Bliss.




About the author:
Tony Bahu is a licensed annuity agent who has helped many men and women own the annuity that is right for them and their family.

NOTICE: This domain name expired on 07/17/2010 and is pending renewal or deletion

Today's offers at GoDaddy.com

instant-sitemaker.info

Learn how to succeed—in life and online—with straight
talk from Go Daddy's CEO & Founder, Bob Parsons®.
Viewer discretion advised!

Get what you need in UNDER 5 MINUTES with our Product Advisor

.com .co .info .net .org .me .mobi .us .biz .mx .ca .ws .ag .com.co .net.co .nom.co .com.ag .net.ag .it .fr .org.ag .am .asia .at .be .bz .com.bz .net.bz .net.br .com.br .cc .de .es .com.es .nom.es .org.es .eu .fm .gs .in .co.in .firm.in .gen.in .ind.in .net.in .org.in .jobs .jp .ms .com.mx .nl .nu .co.nz .net.nz .org.nz .tc .tk .tv .tw .com.tw .org.tw .idv.tw .co.uk .me.uk .org.uk .vg

What's a Domain?  Advanced Search

*Plus ICANN fee of 18 cents per domain name year.

Save up to 15%
on multi-year
 hosting plans!

Plans from $3.99/mo!

Memberships just $4.99/year! Lowest commissions!

Visit GoDaddy.com for the best values on:
Domain namesWeb HostingWeb Site BuildersEmail AccountsSSL CertificatesEcommerce ProductsAnd More!See Product Catalog

Go Daddy Super Bowl CommercialDanica PatrickDale Jr.Go Daddy Girls

GoDaddy.com is the world's No. 1 ICANN-accredited domain name registrar for .COM, .NET, .ORG, .INFO, .BIZ and .US domain extensions.
Source: RegistrarSTATS.com

Copyright © 1999-2010 GoDaddy.com, Inc. All rights reserved.

	What's a Domain Name? Want a Web site? Personalized email? How about an easy, affordable way to promote your business, class reunion or favorite hobby? A unique, memorable dot com domain name is the first step to doing all this and more. It's your 'address' on the World Wide Web, and along with your Web site, serves as your 'online identity,' reflecting your purpose and personality. Friends, family, customers - anyone in the world with Internet access - can type your domain name into their Web browser and visit your Web site.

---