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Index Annuity
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                               Fixed Index Annuity

Fixed Index Annuities or equity index annuities (EIA's) are complex financial products and one of the least understood in the industry today. A popular sales strategy is to represent that EIA's will provide stock market returns without the risk.  This strategy misrepresents the real value that this unique product can provide and builds false expectations for investors that could lead to civil and regulatory consequences and possibly the reclassification of this insurance product to a security by the Securities Exchange Commission.

            So what is an Fixed Index Annuity or EIA?

Fixed Index Annuities, created in 1995, are fixed annuities offered by insurance companies which earn a minimum rate of interest and offer the potential for excess interest based on the performance of selected stock market indices.  Unlike a variable annuity, in which the investment risk is carried by the investor, the EIA's investment risk is transferred to the insurance company and is as safe as the insurance company issuing it.  An EIA with a well structured crediting method is designed to provide returns somewhere between savings instruments and indexed equity returns without the downside loss potential inherent in equity investing if held to term.

As today's Baby Boom generation retires there is significant opportunity to begin educating retirees on the importance of refocusing their investment portfolios away from an accumulation structure designed for maximum returns and risk tolerance to a structure that will support the distribution phase of their retirement. This refocusing is designed to insure that their investments will generate enough income to last for the remainder of their lives.  EIA's examined as an income distribution tool and asset allocation component can provide stability to an investment portfolio in distribution and may well be its greatest financial planning contribution.

It is our mission at Advisory Marketing Services (AMS) to help you understand and identify the best EIA's and crediting methods to meet your clients' growth and income distribution needs.  With new and sophisticated software programs we can provide you with an indepth comparative analysis and illustrations to highlight the best selection to meet your clients' needs and objectives. 

Click here - EIAnalyst2007 Lite  or go to the link listed on the left to view sample illustrations and generate your own analysis, which is password protected.  Call us toll free at 866-274-0774 for a password and additional information about this powerful illustration tool.