Wednesday, June 28, 2006
Equity-Indexed Annuity Would Have Outperformed Stock Market In Previous Long-Term "Sideways" Markets, Study Shows
A $100,000 deposit in a representative EIA in 1966 would have grown to $202,905 by 1982, compared to a lackluster $178,449 from the Dow Jones Industrial Average, including reinvested dividends.*
An EIA pays an interest rate linked to the performance of a stock-market index, with a guaranteed minimum rate if held to maturity. Pete Winer, a Chartered Financial Consultant with Covenant Reliance Producers, assumed the annuity would credit 50% of index's growth during up years without a cap on earnings. The EIA's value would be unchanged in down years.
Equity-Indexed Annuity Would Have Outperformed Stock Market In Previous Long-Term "Sideways" Markets, Study Shows
Source: Market Wire
An EIA pays an interest rate linked to the performance of a stock-market index, with a guaranteed minimum rate if held to maturity. Pete Winer, a Chartered Financial Consultant with Covenant Reliance Producers, assumed the annuity would credit 50% of index's growth during up years without a cap on earnings. The EIA's value would be unchanged in down years.
Equity-Indexed Annuity Would Have Outperformed Stock Market In Previous Long-Term "Sideways" Markets, Study Shows
Source: Market Wire
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