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Home > Banking News > No Risk, No Fee Retirement Plans Providing Big Benefits For Seniors
No Risk, No Fee Retirement Plans Providing Big Benefits For Seniors
(PRWEB) September 7, 2005 -- Retirement investors looking for potential high returns with no risk to their investment should look no further than equity indexed annuities.
That’s the advice from Brian Bibb, who for the past six years has specialized in offering retirement planning services that allow investors to eliminate downside risks with unlimited investment potential such as EIA's. He’s president and owner of Assurance Planning in Amelia Island and makes his services available to residents of Florida and Georgia.
Equity indexed annuities (EIA) are fixed annuities whose returns are linked to an external equity reference or an equity index such as the Standard and Poor’s 500 Composite Stock Price Index, better known as the S and P 500.
The average equity indexed annuity total return was significantly higher than those of other common and riskier investments such as equity mutual funds, bond funds, and variable annuity sub-accounts, according to National Underwriter. The five-year growth for EIA’s ending in 2003 was 30.4 percent, according to the magazine's latest numbers.
“EIA’s have become very attractive to retired investors or for those nearing retirement,” Bibb says. “Typically these people want to know that their investments are safe and that they can get high enough returns to have a comfortable retirement no matter how long they live. The indexed annuities ability to only participate in stock market gains as they occur and never in its losses, along with the ability to lock in these gains has produced tremendous results for our clients.”
Since most EIA’s offer a minimum guaranteed return, the investment will never lose money, Bibb says. “The investor is guaranteed to never lose a dime while participating 100% in the stock market and because it is a fixed annuity there are no fees associated with the accounts as well.”
The downside of the EIA is that they are not for short-term investors. A typical EIA requires a five-year, $25,000 minimum investment. Investors have access to their money and can withdraw up to 10% annually without a penalty, according to the typical EIA contract.
“The EIAs have been tested through the best and worst times in market history and have come out shining,” Bibb says. “From January 1997 to January 2002, a period with great gains and losses, the average EIA returns were higher than 75 percent of all equity mutual funds, higher than 86 percent of all mutual funds, higher than 100 percent of all bond funds and more than double the return of CDs.
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