Why Are Equity Indexed Annuities Bad?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Equity Indexed Annuities are not bad if sold appropriately.  They are in fact a very good way to provide a safe lifetime retirement income.  They can provide a competitive upside interest rate without the downside risk.  The problem is that some agents have sold annuities to people without explaining the product.  Some annuities have long surrender periods for example, thus may not be appropriate for someone who is older or who may need access to the money in a shorter time frame.
    Answered on June 3, 2013
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Why are equity indexed annuities bad?  I didn't know they were? Sometimes you have to look at the source of where the words "bad" come from. Sometimes these type of statements are made as a sales pitch for other products from books to competitive financial products.  Equity Index Annuities are fine in the right situation with the proper amount of over sight or review as time goes on.
    Answered on June 3, 2013
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