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PRWEB) December 6, 2007 -- AnnuityAdvanatge.com announced today that according to five year return data compiled by the Advantage Compendium, an annuity informational web site,
fixed index annuities yielded an average 6.12% return from September 2002 to September 2007. This favorable percentage beat out the average returns of traditional safe savings vehicles such as U.S. Savings Bonds (3.5%) and certificates of deposit (2.5%) over the same five years.
“ Also, there are different restrictions on annuities depending on the state that the consumer lives in, so it is integral for a consumer to be informe... ”
"Proving once again that they are a safe, stable way to grow money with no downside risk, fixed index
annuities have become a great addition to an individual's retirement investment options," says Ken Nuss, CEO of AnnuityAdvantage.com, a one-stop annuity comparison and sales service.
A fixed index annuity, also known as an equity index annuity, is a contract between an insurance company and an individual. In return for a premium deposit, insurance companies tie interest earnings on that premium to a market index, such as the S&P 500. One of the most attractive features of a fixed index annuity is that the principal and any credited interest earnings are protected against loss. Another positive feature is a fixed index annuity offers a guaranteed return rate, even if the market index performs poorly.
The Advantage Compendium's report looked at 19 insurance companies and 23 different
fixed index annuity products. Terms, surrender fees and the indexing methods vary, however, the basic components of fixed index annuities are similar. Returns ranged from 5% to 8%, with 6.12% average annualized yield over the five year term. Principal and credited interest earnings were protected and annuity holders were generally satisfied with their policies.
"My two fixed index annuities are a strong addition to my retirement portfolio - the risk factor of my money is in the right place. I don't have to think about my money, I just open my statement and see the growth," says Lori Redden from Page, Arizona, who purchased two fixed index annuities through AnnuityAdvantage.com.
Several recent articles from news media outlets have, at times, shed unfavorable light on fixed index annuities. A common target of the media is the lack of SEC oversight on fixed index annuities. The oversight of a
fixed indexed annuity comes from a state's insurance commissioner, because it is a fixed interest insurance product. Even though a fixed index annuity's gains are tied to a stock market index, no individual's money is ever invested directly in the stock market. The issuing insurance company assumes all market risk and ensures contractual guarantees.
"A smart consumer should weigh the differences among the various fixed index annuity products being offered by insurance companies. Also, there are different restrictions on annuities depending on the state that the consumer lives in, so it is integral for a consumer to be informed," says Nuss. AnnuityAdvantage.com provides a free annuity shopping service by searching and comparing product offerings from dozens of insurance companies on behalf of the consumer. CEO Ken Nuss is licensed to sell insurance products in all 50 states and the District of Columbia.
Those interested in learning more about how a fixed index annuity can safely enhance retirement savings should visit
www.AnnuityAdvantage.com or call 1-800-239-0356.
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