Index Annuity

An equity- indexed annuity is simply a fixed annuity, either immediate or deferred, which earns interest and provides benefits that are tied to the Standard & Poor’s 500 (S&P 500). An equity-indexed annuity is a contract with an insurance company. One of the best features of an equity-indexed annuity is that is gives a very conservative investor the opportunity to do well and profit when the S&P 500 does well, but at the same time, will guarantee principal. With so much uncertainty in the stock market, equity-indexed annuities, unlike variable annuities, allow you upside, with NO downside risk. Your equity-indexed annuity will guarantee a minimum interest rate, usually 3%.

With an equity-indexed annuity, you are generally able to participate in  60%-70% of whatever the indexed annuity is tied to. For an example, if the S&P were to realize a 15% increase in a single year, you, the client would realize 10%-12%. This is the trade off for having your principal 100% protected.

Many of the companies that Jacob Financial Partners, LLC represents are offering a 10% bonus on all monies invested. For example, if you invested $100,000 into one of these equity-indexed annuities, your account would be credited $10,000 and your opening balance would be $110,000.

So, for the money that you simply cannot afford to lose, an equity-indexed annuity might be the perfect investment for you.