Finra indexed annuity alert

Financial regulator FINRA issued an investor alert on the product, warning that losses are possible and some terms in the fine print may change. With an indexed annuity, the amount of the payments to the annuity holder may increase if a predetermined stock index performs well. Source: Insured Retirement Institute The increase will be capped at a certain level, however, and may not account for a raging market.

FINRA’s investor protection alert, Equity-Indexed Annuities—A Complex Choice, points out that among other problems depending on the specific market conditions an investor may earn far less than she might with a fixed annuity in a poor market while profiting far less than the return There is also a hybrid called an indexed annuity, also referred to as an equity-indexed annuity or a fixed-index annuity. Variable annuities are securities and under FINRA's jurisdiction. Annuities are often products investors consider when they plan for retirement—so it pays to understand them. An indexed annuity generally promises to provide a return linked to the performance of an index. If the index has a gain, the contract value of your indexed annuity will also increase. But your indexed annuity may be credited with a return that is lower than the index’s return because: Dividends are usually excluded. Any gains in the value of the index are generally calculated without including dividends paid on the securities that make up the index. An indexed annuity generally promises to provide a return linked to the performance of an index. If the index has a gain, the contract value of your indexed annuity will also increase. But your indexed annuity may be credited with a return that is lower than the index’s return because: Dividends are usually excluded. Any gains in the value of the index are generally calculated without including dividends paid on the securities that make up the index. If the change in the index is 6%, and a contract’s participation rate is 75%, the rate credited would be 4.5% (75% of 6%). In addition, some indexed annuities may deduct a percentage, or spread, from the amount of gain in the index in determining return. Equity-indexed annuities — EIAs — have characteristics of both fixed and variable annuities, according to a 2006 Finra “investor alert.” Their return varies more than a fixed annuity, but not as

(Agents selling variable annuities are also regulated by the SEC and FINRA.) while the previous version applied only to fixed and fixed indexed annuities.

FINRA IS A REGISTERED TRADEMARK OF THE FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. 11 May 2016 For more information, you can also check out the Financial Industry Regulatory Authority's Investor Alert titled Equity-Indexed Annuities: A  This Alert focuses solely on deferred variable annuities and the unique issues they raise for Investor Alert: Equity Indexed Annuities—A Complex Choice. ➤. There is also a hybrid called an indexed annuity, also referred to as an equity- indexed annuity or a fixed-index annuity. Variable annuities are securities and 

How a Fixed-Indexed Annuity Works. A common selling point in regard to fixed-indexed annuities is the guarantee of principal (meaning that you will never lose a dime of your money that you pay to it).

One type of deferred annuity is an “equity-indexed annuity. The SEC, Financial Industry Regulatory Authority (FINRA) and Minnesota Department of 

One type of deferred annuity is an “equity-indexed annuity. The SEC, Financial Industry Regulatory Authority (FINRA) and Minnesota Department of 

An indexed annuity generally promises to provide a return linked to the performance of an index. If the index has a gain, the contract value of your indexed annuity will also increase. But your indexed annuity may be credited with a return that is lower than the index’s return because: Dividends are usually excluded. Any gains in the value of the index are generally calculated without including dividends paid on the securities that make up the index. An indexed annuity generally promises to provide a return linked to the performance of an index. If the index has a gain, the contract value of your indexed annuity will also increase. But your indexed annuity may be credited with a return that is lower than the index’s return because: Dividends are usually excluded. Any gains in the value of the index are generally calculated without including dividends paid on the securities that make up the index. If the change in the index is 6%, and a contract’s participation rate is 75%, the rate credited would be 4.5% (75% of 6%). In addition, some indexed annuities may deduct a percentage, or spread, from the amount of gain in the index in determining return. Equity-indexed annuities — EIAs — have characteristics of both fixed and variable annuities, according to a 2006 Finra “investor alert.” Their return varies more than a fixed annuity, but not as

FINRA is issuing this Alert to warn investors about investment scams that Sales of equity-indexed annuities (EIAs) have grown considerably in recent years.

An indexed annuity generally promises to provide a return linked to the performance of an index. If the index has a gain, the contract value of your indexed annuity will also increase. But your indexed annuity may be credited with a return that is lower than the index’s return because: Dividends are usually excluded. Any gains in the value of the index are generally calculated without including dividends paid on the securities that make up the index. An indexed annuity generally promises to provide a return linked to the performance of an index. If the index has a gain, the contract value of your indexed annuity will also increase. But your indexed annuity may be credited with a return that is lower than the index’s return because: Dividends are usually excluded. Any gains in the value of the index are generally calculated without including dividends paid on the securities that make up the index. If the change in the index is 6%, and a contract’s participation rate is 75%, the rate credited would be 4.5% (75% of 6%). In addition, some indexed annuities may deduct a percentage, or spread, from the amount of gain in the index in determining return. Equity-indexed annuities — EIAs — have characteristics of both fixed and variable annuities, according to a 2006 Finra “investor alert.” Their return varies more than a fixed annuity, but not as FINRA's alert, which is a must-read for anyone considering these products, warns: "Although one insurance company at one time included the word 'simple' in the name of its product, EIAs (equity The surrender period can range from five to 10 years or longer depending upon the contract. Make sure you are aware of the length of the surrender period and the surrender charges. Indexed annuities, often called equity-indexed annuities, offer limited upside participation in a stock market index like the S&P 500.

Annuity Intelligence Report – Side-by-Side Comparison. Variable Annuity Subaccount Detail. VA Expense Analyzer – Summary Report. FINRA-reviewed reports