• Independent Study

  • Financial Mistake: Not considering unbiased third party research about fixed indexed annuities.

    Independent Study on Fixed Indexed Annuities

    Fixed indexed annuities can be an excellent vehicle for savings and retirement. There are many features and benefits that we have discussed throughout this website. However, don't take out word for it. Consider the research findings of a neutral third party to equip you with additional facts as you evaluate the appropriateness and appeal of a fixed indexed annuity for you and your family.

    The Wharton Financial institutions Center (Wharton College, Pennsylvania) released a report entitled "Real World Index Annuity Returns" that uses real data from actual policyholders to provide you with an accurate assessment of the performance of these products*. We hope that you will find this information useful and have the entire report available here for your review.

    As a preview, we have listed some sample quotes found in the report below.

    ♦ "the article will delve into additional FIA features not found in ordinary securities and various principal
        protection programs."
    ♦ "Annuity returns have been competitive with alternative portfolios of stocks and bonds. From 1997 through
        2007 the five-year annualized returns for FIA's averaged 5.79%".
    ♦ "Nearly 96% of FIA's possess reset (or ratchet) features that allow for locking in positive returns each annual
        or biannual period. By eliminating the prejudicial effects occasioned by significant stock market declines,
        and locking in returns annually or biannually, there is less of a need to try and capture large up-side
        market swings to recover from the declines."
    ♦ "Unlike mutual funds, an FIA does not deduct sales charges, management fees or 12b-1 marketing fees.
        Instead, the insurance company uses a small amount from the underlying portfolio to cover administrative
        costs and commissions to brokers".
    ♦ "For moderate and risk adverse individuals...because FIA's are designed to avoid downside risk, they
        tend to produce preferred return patterns for such consumers when compared to alternative
        investment strategies that expose consumers to significant levels of that risk."