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Fixed Indexed Annuities: The Big Advantage Over Stock Market Volatility

March 08, 2012 | Comments: 0 | Views: 133

Investors that have experienced considerable losses and watched helplessly as their investment portfolios fall to pieces during the last stock market crash, are making much more cautious investment decisions today than ever before. A Fixed Indexed Annuity has gained a great deal of investor appeal for many cautious investors.

Compared to alternative investments of equal risk, the Fixed Indexed Annuity has several significant advantages.

Fixed Indexed Annuity Advantages

A significant appreciation may be obtained when a lump sum is invested into a this kind of Annuity, and the process is much quicker than a savings account or CD. The element of Tax Deferral is one of the most appealing advantages. Unlike other options where earnings are taxed each year, the Tax-Deferred Fixed Indexed Annuity also allows taxes to be delayed or deferred until the money is withdrawn.

Another attractive feature is the opportunity for guaranteed lifetime income. There is much debate about the future, potential of insolvency, and possible ineptitude surrounding the Social Security program. Many are fearful that the system will resort to drastic decreases in benefits or entirely dissolve benefits. Comparatively, the guaranteed income in this kind of Annuity is much more attractive.

Many people have lost faith in the federal government's ability to contribute to their retirement income, especially the Baby Boomer Generation. This group is also not very prone to placing faith in the stock market or any volatile investment portfolio. Instead, Baby Boomers tend to opt for the guarantees that are offered from this type of program.

These days, Baby Boomers are taking their old 401k's and IRA's that are losing money in stock market investments and transferring them in to Fixed Indexed Annuities more now than ever before. This is a great way for them to preserve their principle and lock in guarantees along with the option for life time income benefits which they are not currently able to do with their traditional investments. They may even earn a premium bonus anywhere from 5% to 12% on their money from the Financial Institution that offers these type of Annuities just by becoming a client.

How to Choose a Fixed Indexed Annuity

First, you will want to find a company that has a stable and steady track record, as the Fixed Indexed Annuity will most likely need to last you 10-30 years post-retirement. An "A" rating by a financial firm is usually a good indicator of their stability.

Gemlife Financial represents the "A" rated Financial Institutions that provide Fixed Indexed Annuities. For more information contact Gary M. Ybarra at Gemlife Financial at: 888-858-6236 email: or for a Free Consultation.

Source: EzineArticles
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