Factors to Consider when purchasing indexed annuities
- Indexed annuity earnings are tied to a market index
- Guaranteed complete protection from market losses
- Project higher yields than traditional fixed annuities
- Compound earnings tax free
- Are designed to grow cash for retirement
- Offer tax favored retirement income
- Guarantee retirement income options
- Have early surrender penalties
- Have a tax penalty on withdrawals prior to age 59 ½
- Is a buyer beware product because of complexity and fine print
- Most consumers buy the wrong annuity
- Proper annuity selection requires an experienced professional