Phoenix Indexed Annuity & Annuities
Are you interested in a Phoenix indexed annuity, or simply wanting to learn more about how they work? At MyAnnuityGuy.com™, we hope to educate and inform those who want to secure their financial future during the retirement years through products such as Phoenix indexed annuities. However, we realize that for many individuals, these topics can be quite confusing and complicated. How do you know if an indexed annuity is best for your unique situation? Here you will find some background information, so that by the time you finish this page you will have no doubt regarding whether this product is suitable for your needs.
Over the last several years, investing in the stock market has become quite risky. What if you could benefit from the growth of the market, without actually taking the risks you would if you were to invest directly in it? This is the beauty of a Phoenix indexed annuity. While you can benefit from the growth of the market with no risk, your principal is protected at the same time. With Phoenix indexed annuities, there is no such thing as a negative credit, so the value of your account remains intact even when the markets suffer a blow.
Most individuals purchase these annuities from an insurance company or financial advisor. You may have heard the terms “caps,” “spreads,” “credits,” or even “premium bonuses” in relation to Phoenix indexed annuities. Does it all sound Greek to you? You’re not alone. At MyAnnuityGuy.com™, we work to clearly explain your options in a way that you will understand. How can you make wise investment choices for your retirement, if you cannot understand what you are purchasing? We are happy to explain the terms, and help you determine whether an indexed annuity is the right choice for you.
While you will not assume any risk should the stock index perform poorly, you may also experience lower yields than expected on occasion. This is usually due to a combination of factors, including fee-related deductions and caps (the maximum interest rate that an insurance company will pay on an equity-indexed annuity). For example, suppose the stock market increases 10%, but the insurance company you purchase your Phoenix indexed annuity from has a Cap of 6%. You will enjoy a 6% yield instead of the 10% that the market increased, because of the Cap placed by the insurance company or financial institution. However, many investors feel that this is a very fair exchange, considering they will never go into the “red” when the market is down.
At MyAnnuityGuy.com™, we know that you likely have many questions – and we’ve got the answers. We recommend annuities that we feel are in your best interests, and never charge annual advisory fees or other upfront fees. If you are interested in going more in-depth regarding Phoenix indexed annuities, contact us any time. Your financially secure retirement is what we specialize in!