Brent,

Are there any studies that compare a indexed annuity with the S&P 500?
I'm looking for a side-by-side comparison.

JLP

<haroldact[at]yahoo.com> wrote in message
news:1107378417.507092.32760[at]c13g2000cwb.googlegroups.com...
- quote -

Harold,

Here's a direct link to the consumer FAQ at the world's best resource for
FIAs:

http://www.indexannuity.org/consumers.htm

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://www.brentdgardner.com/
http://www.gardnerfinancialgroup.com/
http://www.topgunproducers.com/
http://www.creditfixinc.com/

Si vis pacem para bellum!

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry. The ISP source of this post is not
monitored. If you want to email me, click on a link.

I agree with Elizabeth. Also, based on the long-term rates of return
in the stock market, I don't think the "guarantee" of the annuity is
necessary and is quite expensive. The whole purpose of an index
annuity of this type is to allow you to participate in the stock market
gains without the losses. The only reason you should even consider
such a product is if you can't stomach volatility.

JLP

http://AllThingsFinancial.blogspot.com

<haroldact[at]yahoo.com> wrote in message
news:1107378417.507092.32760[at]c13g2000cwb.googlegroups.com...
- quote -

That means the contract has a mandatory payout at that age, so if you
haven't already started taking payments by then, the payments will begin no
later than that date.

- quote -

What's the name of the product and the issuing company?

Fixed Index Annuities (FIA) have been a sleeping giant these last five
years, with the better contracts outperforming the very indices the track,
because they never lose money, and the annual reset contracts credit gains
from the bottom of the bad years (this means that some have outperformed
other risky assets, such as registered products -- namely, variable
annuities and mutual funds).

The two best sites for a consumer for these products are the following:

http://www.indexannuity.org/
http://www.nafa.us/Resources/faq.asp

A FIA is NOT a Variable Annuity (VA), so don't let anyone confuse you with
misinformation about annuities.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://www.brentdgardner.com/
http://www.gardnerfinancialgroup.com/
http://www.topgunproducers.com/
http://www.creditfixinc.com/

Si vis pacem para bellum!

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry. The ISP source of this post is not
monitored. If you want to email me, click on a link.

<haroldact[at]yahoo.com> wrote in message
news:1107378417.507092.32760[at]c13g2000cwb.googlegroups.com...
- quote -

Good for you to start early with salary deferral! One of the primary
advantages of a variable annuity is its tax-deferred growth. Your 457
already provides that, so there is no reason for you to duplicate that
effort, and an annuity choice at this time probably has greater
fees/expenses than the other choices in your plan. If you should decide to
annuitize at the time of retirement, then you can choose a suitable annuity
contract then.

Elizabeth Richardson

I just started a 457 Plan with the school district I am working for.
The representative that set up my account gave me several investment
options. I have roughly $800 to put into the 457 each month. He
suggested that I put $400 into mutual funds and the other $400 into an
equity-indexed deferred annuity. Not knowing too much about the later,
I thought I'd come here to get some opinions.

I am 35 years old and don't see myself needing this money for at least
20 years. Here are the details of the annuity.

Annuity Date: February 2056. Can somebody tell me what this means
exactly? I know it says income payments begin on this date. But does
that mean that I don't see a dime until I'm 86? Please forgive my lack
of knowledge on annuities.

Interest Account Interest Rate: 3%
Index: S&P 500
Participation rate: 70% (Minimum at subsequent reset dates: 30%)
Cap: 7%
Floor: 0%

I guess what I would like to know if I'm better off putting more money
into actual mutual funds. I do like some of the safety that this
annuity provides. But I am in this for the long term and was wondering
if this was the way to go. Thanks!

Harold