Better alternatives of annual stock index pensions
Equity indexed annuities (EIAs) have become a hot product in recent times. I think you can easily find other alternatives achieve a better return, without locking your money or huge surrender penalties. I’ll discuss these alternatives in the following articles. But first, you must understand two things: your purpose and how environmental impact assessment studies.
Know why you are investing. For simplicity, let us consider two of the objectives of the stability and Growth Pact. If you are concerned mainly about the protection of your investment and earn a fixed rate of return and your main objective is stability. On the other hand, if you are concerned about protecting yourself from high prices, build retirement nest eggs or growing your wealth and your objective is growth.
Unlikely to be your stability or growth 100% 100%. Usually it will be a combination of the two. For example, if you are 55 years of age, and preparing for retirement, you probably want to about 40% of your portfolio is invested in the ‘ stable ‘ investments like bonds or CDs, and 60% invested in stocks such as equity funds.
On the other hand if you’re 75, stability may be more of a problem for you. You still want to plan for inflation, but your objective is very different from 55 years ago. You may have 70% in stable investments and only 30 percent of your money in stocks.
You’ve probably said to EIA studies are the ideal solution. You sold as stability and growth. Says sales reps can participate in the growth of the stock market without risk, while always earn a minimum of 3 per cent. It appears that the environmental impact assessment study will help you to achieve both objectives. Upon closer examination, though, you will see that they don’t do either very well.
The environmental impact assessment studies provide stability because they provide a minimum return of 3 per cent. Let’s put this in perspective. Contrast 3% minimum needed to keep the money in your investment for many years, or else pay a fine that in some cases can have the equivalent of over 3 years worth of back!
Furthermore, this does not change the minimum 3% over a long period of investment. In the case of an increase in interest rates during those years 7 to 12, you will be able to make use of them. Imagine how would you feel if you knew that earn 5% or 7% in CD or bonds guaranteed by the Government, but you were stuck in the environmental impact assessment pay 3%! EIA provides stability just doesn’t measure up.
So let’s take a closer look at the growth offered by the environmental impact assessment study. Typically, the choice of investment are limited to 500 p & s, NASDAQ, or index for bonds. But the environmental impact assessment for the imposition of a limit on how much you earn. If these indexes go up 25% or 50% as they did in 2003, may earn only 10% to 12%.
Environmental impact assessment studies only allows you to share only in part of the return for the index, or internal charges of 1-2%. Even if the underlying index goes up 10%, your return will be less. This makes sense when you realize insurance has to earn back the enormous Commission that it paid “worker”. The insurance company does not pay a minimum 3% in bad times and allows you to get 100% back in the good times.
Therefore, environmental impact assessment, take the risk of investing in the stock market but don’t get a return of all. Do not stack the deck against yourself. When investing in stocks must have access to the thousands of options, and get the return of all.
Abstract: why trap yourself in the investment limits upside your potential and shackles you with outrageous surrender penalties, all of% 3 measly promised to return, while your agent walks away with 10 or 12%? Regardless of how you need to divide your portfolio between stability and growth, believe me, there are lots of better ways to manage your money.
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