|
Here's
why you might want to consider an Equity Indexed Annuity (EIA) |
| In
the last year, index annuities have delivered 3 to 8 times the
return of CDs. |
| No index annuity owner has ever lost a dime due to market
downturn. |
| No index annuity owner has ever lost a dime because a
carrier failed. |
| Unlike bonds, index annuities don’t lose value when
interest rates rise. |
| An index annuity let’s you take advantage of market
drops. |
Retirement Modeling
Retirement
Modeling determines whether the underlying investments can provide
the income required by the retirees. Other financial advisors
and retirement planners usually over-simplify the process of
evaluating EIA performance, to the detriment of the client.
At
the heart of the client educational process is the presentation of
the EIA using fair and balanced methods. In short, they'll
learn how "cherry-picking" time periods for the historical
analysis or benchmarking against inappropriate indexes fail to
demonstrate how an EIA performs during both good and bad times.
Probabilities
NOT Certainties
Retirement
Modeling is a process of forecasting and then simulating
that result through mathematical probabilities. There is no
room in the retirement modeling process for the use of average
returns or simple portfolio optimizations. These techniques do
little more than tell a client what they should have invested in: they
offer very little forecasting value. Monte Carlo analysis,
or random number generation, allows a planning scenario to be
assessed for viability. What is the likelihood it will work?
Risks
Must Be Accurately Depicted
Although
EIAs are not securities and they have no principal risk,
they do have a risk of return distributions. Traditional fixed
annuities provide returns based on interest rates. These
interest rates offer positive returns each and every year that the
investor remains invested. However, an EIA index
crediting method offers returns to investors only when the index
crediting method is positive; otherwise, the investor receives a
0% return.
Comprehensive
Software Tools
Using
our comparison software tools, an analysis is conducted
and the results are presented in reports that include
easy-to-understand charts and tables of data. For example, you
may see one report comparing two types of EIAs or another
report that outlines how a selected EIA can meet your
retirement income needs.
Sample
reports are available for serious buyers (no "tire
kickers" or competitors, please).
