Equity Indexed Annuities: Downside Protection, But at What Cost?

Collins, Patrick J.; Huy Lam; Stampfli, Josh
May 2009
Journal of Financial Planning;May2009, Vol. 22 Issue 5, p48
Academic Journal
The article discusses equity indexed annuities (EIA) which offer investors protection against losing money from their investments. Several topics regarding EIA are discussed including the perspective that insurance carriers have regarding EIA, various features of an EIA contract that impacts the amount of money that an investor can potentially make and how EIA should be evaluated by investors. The author feels that EIA are most likely to be used by investors who are not comfortable with risky investments.


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