L wrote:
> Began reading up on Index annuities. I get mixed messages on what the
> real return are after all cost ..particaption etc. Considerning how
> crazy the market seems to be 2000 to today would be a good period for
> calulating purposes.. if it makes any difference lets assume a person
> starts in 2000 with 100K. or even better there must be others who have
> real world returns. Thanks
I am on record as being anti-annuity with the exception of the immediate
kind.
That said, the terms for annuities seemed to have changed from the time
I formed my opinion, and if I saw a prospectus confirming this I may
change my mind.
I am hearing of indexed annuities that offer 100% participation (i.e.
100% of the gain in index is passed on to the account holder. This does
not include dividends.) Also, a return of 2% as a floor, and 15% maximum
return in a year.
You can pull S&P data and run your own numbers, at least to show what
your return would have been in the last X years. You lose return by
giving up the dividends, and having a cap, but gain some by having a
guaranteed minimum. If you are being offered such a product, you should
read it to understand the exact terms.
Joe
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