“Equity-Indexed Annuities and Revenue Competitors”的版本间的差异

2013年7月18日 (四) 15:49的最新版本

An equity-indexed annuity is just a type of annuity that grows and makes interest based on a system related to your specific stock exchange index.An Equity Indexed Annuity by having an Income Rider is a contract between you and the insurance provider which provides:1) Guaranteed return of principal, 2) Returns connected to a list (susceptible to a top), 3) Credited gains can not be lost, 4) Guaranteed minimum interest, 5) Liquidity functions (nursing home, crucial condition & 10 % annual withdrawal), 6) Taxes not due until withdrawal, 7) Avoidance of Probate, 8) Protection from creditors, 9) No annual costs (besides the price of the rider depending on the provider) and 10) guaranteed income you (or you and your partner) can't outlive.Equity Indexed Annuity Crediting MethodsFunds can be allocated between the various crediting techniques and annually the allocation can be improved. Most EIA's enable one or a mixture of various indexes to be properly used including S&P 500, Nasdaq-100, FTSE 100 etc.1) Fixed Account: Frequently between 2.5% -3.5%Fixed consideration crediting is good in years if the industry may fall and certain progress is desired.2) Annual Point out Point using a Cap (suppose 6.5%). Take the difference between the anniversary of the end of the contract year value and the contract value of the index employed and use the cap (if appropriate). For example, if the index (say S&P) goes up 12% for the year of the contract, the account might get 6.5% (the limit). If the S&P went up 5% the account would get 5% and if the marketplace went down 15.4-inch the account would keep even.Annual Point to Point crediting is good in years when there's small increases within the market.3) Monthly Sum (also known as Monthly Point to Point) with a regular hat (think 2.5%). Just take the difference involving the beginning of the month worth of the index used and use the cap (if relevant). As an example, if in the first month of the agreement the S&P went up 2.75% the bill would get 2.5-inch (the cap). If in the next month of the agreement industry went up 2.10% the account would get 2.10 etc. There's no-limit on negative results each month (aside from the proven fact that at the conclusion of the year it is possible to never drop money so if the crediting method makes a negative the consideration would keep even) so if the directory would go down 3.2% in month 3 and down 3.5% in month 4, the contract would be (2.5%+2.1%-3.2%-3.5% )= negative 2.1 Safe Money. Hypothetically, if the S&P went up 2.5% or even more every month the bill might make half an hour (2.5% x 12 ).Monthly Sum (Monthly Point to Point) crediting is good when there are constant gains within the market.4) Monthly Average with a spread (believe 3%). Monthly values are included for the entire year and divided by 12 to get the typical index value. With that value the per cent gain or loss will soon be calculated. The spread is taken from the gain to determine the credited interest rate If you have a share gain then. To illustrate:Step 1: Note the market value by the time of the agreement. For example 970.43 Step 2: Add up all end of month prices and divide by 12. For example 13,054.27/12=1087.86 Step 3: Determine gain or loss: 1087.86-970.42=117.43 factors or a 12.10% gain. Stage 4: Subtract the 3% spread to determine credited sum (12.10%-3% )= 9.10%The Monthly Average crediting technique is great when the list is volatile.If you considering this investment and are doubtful if it's appropriate for you, then you may possibly take advantage of having a skilled financial consultant who's able to show you the rules and help you purchase the financial products that can best meet your aims.