Finra equity indexed annuity alert

What Are the Negatives of Investing in a Fixed Index Annuity?. A fixed index annuity is an investment sold by insurance companies, whose return is based upon an index of stocks, such as the S&P 500. To purchase a fixed index annuity, a person makes a lump sum payment to the insurance company. The returns on the An equity-indexed annuity is a combination of a fixed and a variable annuity. The marketing pitch usually goes something like this: Equity-indexed annuities give you the best of both worlds.

For example, fixed and equity indexed annuities may have no up-front charges; however, this does not mean the agent and the insurance company are not making  Some people are opting to buy fixed or indexed annuities from the start, while others are making 1035 exchanges from a variable annuity that they currently own. 25 Jun 2008 As FINRA noted in an Investor Alert, indexed annuities are "anything but easy to understand." FINRA added that, because there are so many  27 Jun 2012 Equity-indexed annuities (see FINRA Notice 05-50);; Hedge Funds (see FINRA Notice 03-07);; Asset-backed securities, including those 

11 Sep 2014 Fixed indexed annuities were formerly called equity indexed annuities. Financial regulator FINRA issued an investor alert on the product, 

FINRA Investor Alert: Should You Exchange Your Variable Annuity? Insurance products are regulated by the SEC and FINRA. Equity-indexed annuities (EIAs) have characteristics of both fixed and variable annuities. Their return varies more than a fixed annuity, but not as much as a variable annuity. FINRA is more closely monitoring these annuity exchanges, especially since broker-dealers are selling more indexed annuities than ever. This information comes from Investment News’ “ Fixed annuity sales receiving added scrutiny from Finra ,” by Bruce Kelly and Darla Mercado. What Are the Negatives of Investing in a Fixed Index Annuity?. A fixed index annuity is an investment sold by insurance companies, whose return is based upon an index of stocks, such as the S&P 500. To purchase a fixed index annuity, a person makes a lump sum payment to the insurance company. The returns on the An equity-indexed annuity is a combination of a fixed and a variable annuity. The marketing pitch usually goes something like this: Equity-indexed annuities give you the best of both worlds.

The SEC's Office of Investor Education and Advocacy is issuing this bulletin to educate investors about indexed annuities. Indexed annuities are complex products. Investors should carefully read the indexed annuity contract, and any prospectus, before deciding whether to buy the annuity.

Equity-indexed annuities are financial instruments in which the issuer, usually an insurance company, guarantees a stated interest rate and some protection from loss of principal, and provides an opportunity to earn additional interest based on the performance of a securities market index.

minimum value to the purchaser.14 The specific features of indexed annuities vary from 14 FINRA Investor Alert, supra note 13; National Association of Insurance Commissioners, Buyer’s Guide to Fixed Deferred Annuities with Appendix for Equity-Indexed Annuities,

Equity-indexed annuity products are sold by insurance agents, frequently by Authority (FINRA) Investor Alert, Equity-Indexed Annuities: A Complex Choice  26 Jan 2020 Indexed annuities, often called equity-indexed annuities, offer limited upside Check out FINRA's Investor Alert on indexed annuities as well. 5 Jul 2018 In fact, the Financial Industry Regulatory Authority (FINRA) has issued an investor alert characterizing equity-indexed annuities as “anything but  For example, fixed and equity indexed annuities may have no up-front charges; however, this does not mean the agent and the insurance company are not making  Some people are opting to buy fixed or indexed annuities from the start, while others are making 1035 exchanges from a variable annuity that they currently own. 25 Jun 2008 As FINRA noted in an Investor Alert, indexed annuities are "anything but easy to understand." FINRA added that, because there are so many  27 Jun 2012 Equity-indexed annuities (see FINRA Notice 05-50);; Hedge Funds (see FINRA Notice 03-07);; Asset-backed securities, including those 

The Financial Industry Regulatory Authority (FINRA) Investor Alert, Equity-Indexed Annuities: A Complex Choice recognizes the potential for elder financial fraud and cautions investors to understand the complex nature of equity-indexed annuity products. According to FINRA, questions investors should ask include: What is the guaranteed minimum

What Are the Negatives of Investing in a Fixed Index Annuity?. A fixed index annuity is an investment sold by insurance companies, whose return is based upon an index of stocks, such as the S&P 500. To purchase a fixed index annuity, a person makes a lump sum payment to the insurance company. The returns on the An equity-indexed annuity is a combination of a fixed and a variable annuity. The marketing pitch usually goes something like this: Equity-indexed annuities give you the best of both worlds. The interest rates for indexed annuities — also known as fixed-index annuities — are tied to an equity index, such as Standard & Poor’s index of 500 stocks. The growth opportunity fluctuates more than that of a fixed annuity, but less than the growth opportunity for a variable annuity. For example, if Standard & Poor's 500-stock index returns 26% this year, as it did in 2009, investors in some of the Phoenix Companies' equity-indexed annuities would receive just 6.5% or less

13 Sep 2010 Why an Alert on Equity-Indexed Annuities? Sales of equity-indexed annuities ( EIAs)—also known as "fixed-indexed insurance products" and  Equity-indexed annuities — EIAs — have characteristics of both fixed and variable annuities, according to a 2006 Finra “investor alert.” Their return varies more  Equity-indexed annuity products are sold by insurance agents, frequently by Authority (FINRA) Investor Alert, Equity-Indexed Annuities: A Complex Choice  26 Jan 2020 Indexed annuities, often called equity-indexed annuities, offer limited upside Check out FINRA's Investor Alert on indexed annuities as well. 5 Jul 2018 In fact, the Financial Industry Regulatory Authority (FINRA) has issued an investor alert characterizing equity-indexed annuities as “anything but  For example, fixed and equity indexed annuities may have no up-front charges; however, this does not mean the agent and the insurance company are not making  Some people are opting to buy fixed or indexed annuities from the start, while others are making 1035 exchanges from a variable annuity that they currently own.