An indexed debt (FIA) is the product of choice for products top selling annuity agents who are tired of seeing their clients lose money in CDs at low interest rates. A fixed indexed annuity is a hybrid product that fixed quickly becoming the new "safe home" for the billions previous CD, the stock market and mutual fund dollars. And with good reason.
HOW IT WORKS
The FIA provides a safety net that is usually 1-3% interest compounded annually. But this is only the minimum guarantee through the duration of the contract. The upward income potential is much greater.
As its name suggests, is linked indexed debt a stock index such as Standard & Poor's 500. The S & P 500 is the benchmark for U.S. equity markets, reflecting the general health general stock market. As the market increases the revenues go up because his client participate in a percentage. But (and this is important), when the bag turns again as it always does, your customers will not lose money.
What was that again?
This is worth repeating. When the bag rises, profits rise with subject to a limit. But when the market turns again as it always does, the policy of not losing money. Gains are locked in each annual anniversary index point. The owners of the FIA win 2 or 3 times the guaranteed interest rate when the market rises, and when the market turns again to they keep all the profits. Upside gains without the downside risk. How cool is that?
Tax-deferred growth
Moreover, your client's income grows tax-deferred, provided that the stay in the annuity. This means they earn more money in the party do not have to send Uncle Sam. Unlike a CD, there is no Form 1099 to add a statement of income each year. Why pay no income taxes to spend?
The Seniors citizens are especially fond of fixed indexed annuities as deferred interest income is not counted as provisional and may reduce or eliminate taxation of profits Social Security. ISAF are also becoming a vehicle for funding retirement plans of small business favorite, as a 401 (k) and SEP-IRA.
WHAT TO DO?
If you sell to retirees or future retirees, you owe it to yourself to learn why millions of people move thousands of millions (actually billions) of dollars on fixed incomes indexed. They are the sensible alternative that can make large commissions.
Taxes – The Problem
Related posts:
Comments on this entry are closed.