The Dangers Of Indexed Annuities

The Dangers Of Indexed Annuities by Stephen Aust

This brief blog is a second BONUS July blog.  Lucky you.  It will not cover any market information.  I will summarize the negative points of locking one’s money into an indexed annuity.  Annuities are issued by insurance companies.  Insurance companies are “for profit” institutions; they are not your “friend.”  They will not produce an investment product that does not ultimately benefit the insurance company.  There is nothing wrong with this, it is just a fact.

Indexed annuities generate a guaranteed level of income for the person that buys the annuity and the amount of income is almost always capped at a certain amount.  The level of income is low and kept low.  The...