Indexed Annuities are not bad if set up properly. They are a very safe way to generate savings at market like rates without the downside risk. While you will have greater potential with security type investments such as stocks and mutual funds, you also have greater potential for loss. When selecting any annuity be aware of surrender charges and make sure you do not tie up all your liquid funds into any long term investment.
In Canada, variable annuities are often called segregated funds or seg funds. They are similar to mutual funds, but since they are issued by insurance companies that have death and maturity guarantees of 100% or 75%.
Indexed annuities are not "bad", like any investment they are appropriate for some and not others. If the guarantees and other features are important to you and fit with your investment objectives they are "good" and should be considered. If not they may not be right for you.
If you have further questions. or believe that I could be of assistance, please do not hesitate to contact me.
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Indexed annuities are not "bad", like any investment they are appropriate for some and not others. If the guarantees and other features are important to you and fit with your investment objectives they are "good" and should be considered. If not they may not be right for you.
If you have further questions. or believe that I could be of assistance, please do not hesitate to contact me.