Tax Deferred Savings Accounts Tied to the S&P Stock Index

Indexed annuities:
I have published articles nationally and at the state level on this concept since their inception, 1998. Please call me for more details at (916) 601-5270.

Indexed annuities are unlike any product in the marketplace. By legal definition they are a fixed annuity product, but with greater potential returns than those provided with guaranteed rate annuities. All fixed annuities feature not only safety of principal; but also minimum interest guarantees.
Indexed annuities allow you to benefit from potential gains when the stock market is up, but also prevent you from being penalized when it’s down. Unlike a variable annuity or mutual fund, the risk of losing your money due to a market decline does not exist with indexed annuities. So even if the stock market were to go down in value, your annuity contract value can never decline:
IN A DOWN YEAR ZERO % IS ADDED TO YOUR ACCOUNT INSTEAD OF A NEGATIVE. THAT MEANS YOU GET TO KEEP ANY PRIOR YEARS INTEREST. (See attached chart for an example) . In addition, like all fixed annuities, you’re protected by a lifetime guaranteed interest rate.

Income enhancement riders:
You can give up about ½% of your gain and add a rider that guarantees a high guaranteed crediting rate for income purposes of as much as 8% until income is taken. I recommend a computer printout example based on your age of how this gives you high guaranteed income no matter what the market indexes do!
As stated above, Indexed Annuities offer the potential of higher returns without exposing principal to market risk. In exchange for this guarantee of no downside risk, Indexed Annuities policyholders must generally be willing to give up some of their upside market potential. In exchange for having their retirement assets fully protected from loss (and in fact, a gain is guaranteed) an indexed annuities owner shares in market gains without realizing 100% of the gain or 100% of the loss. IN A DOWN YEAR 0% IS ADDED TO THE ACCOUNT, NOT A NEGATIVE. (See attached chart for an example). For most individual investors who have recently been stung by market volatility, this constitutes a prudent and desirable trade-off.

All of this is usually accomplished by linking (indexing) the credited rate to an equity index, such as the S&P 500 Composite Stock Index. To repeat: although the credited rate is linked to stock market performance, safety of principal is assured. A decline in the stock-market will NOT reduce the asset value of indexed annuities.

For a more in depth discussion of indexed annuities, their features and benefits as well as various product designs, please contact: Randy Taylor at  (916) 601-5270. Resident License number since 1983 : 0643596


CNBC NEWS VIDEO OPINION: The client calls in and the news panel gives candid comments about the gains realized in the sideways market; and also on safety: Copy this link to your url address or simply click here:
http://www.youtube.com/watch?v=iOyXfcB9r6s

( Feel free to request a vital signs report on any insurance carrier. The report is free and will disclose financial strength ratings from 5 different rating services.)