“Equity-Indexed Annuities and Income Individuals”的版本间的差异

2013年7月18日 (四) 11:16的最新版本

An equity-indexed annuity is a form of annuity that develops and makes interest based on a method related to a particular stock market index.An Equity Indexed Annuity by having an Income Rider is just a agreement between you and the insurance company which provides:1) Guaranteed return of principal, 2) Returns connected to a list (susceptible to a cover), 3) Credited benefits can not be lost, 4) Guaranteed minimum interest, 5) Liquidity capabilities (nursing home, crucial disease & 10% annual withdrawal), 6) Taxes perhaps not due until withdrawal, 7) Avoidance of Probate, 8) Protection from lenders, 9) No annual fees (besides the cost of the rider relying on the provider) and 10) assured income you (or you and your partner) can not outlive.Equity Indexed Annuity Crediting MethodsFunds can be given between the different crediting strategies and each year the part can be transformed. Most EIA's permit one or a mix of different indexes to be properly used such as S&P 500, Nasdaq-100, FTSE 100 etc.1) Fixed Account: Frequently between 2.5-4m -3.5%Fixed account crediting is great in years if the market may fall and assured expansion is desired.2) Annual Point to Point using a Cap (think 6.5%). Consider the distinction between the anniversary of the end of the contract year value and the contract value of the index employed and use the cover (if applicable). For instance, if the index (say S&P) goes up 12% for the year of the contract, the account would get 6.5% (the hat). If the S&P went up 5% the account would get 5% and if the market went down fifteen minutes the account would stay even.Annual Point to Point crediting is great in years when there is small increases in the market.3) Monthly Sum (also known as Monthly Point to Point) with a regular top (suppose 2.5%). Just take the difference between your start of the month worth of the index used and apply the regular limit (if applicable). Like, if in the first month of the contract the S&P went up 2.75% the account would get 2.5-4m (the limit). If in the 2nd month of the agreement industry went up 2.10% the bill might get 2.10 etc. There is no-limit on negative results each month (except for the proven fact that at the end of the year you are able to never drop money so if the crediting method yields a negative the account would keep even) so if the list would go down 3.2% in month 3 and down 3.5% in month 4, the agreement would be (2.5%+2.1%-3.2%-3.5% )= negative 2.1. Hypothetically, when the S&P went up 2.5% or more each month the account would make one month (2.5% x 12 ).Monthly Sum (Monthly Point to Point) crediting is good when you can find steady benefits within the market.4) Monthly Average with a spread (think 3%). Regular values are included for the season and divided by 12 to get the typical index value. With that price the % gain or loss will be calculated. When there is a share gain then the spread is taken from the gain to look for the paid interest. To illustrate:Step 1: Note the market value as of the date of the contract 401k rollover to ira. Like 970.43 Step 2: Accumulate all end of month prices and divide by 12. As an example 13,054.27/12=1087.86 Step 3: Determine gain or loss: 1087.86-970.42=117.43 points or a 12.10% gain. Phase 4: Subtract the 30 % spread to ascertain awarded volume (12.10%-3% )= 9.10%The Monthly Average crediting technique is great when the list is volatile.If you considering this expense and are doubtful when it is proper for you, then you may benefit from having a skilled financial expert who's able to show you the basics and help you purchase the financial products that'll best meet your goals.