For years, conservative investors have been using CDs and bonds as an ironclad means of saving for retirement. While unspectacular, the returns on these investments were steady and stable and helped many folks looking for a safe way to save for their golden years.
Then the financial crisis of 2008 hit, upending financial markets and changing the rules. As a result from ongoing fiscal upheaval, CD rates – already low – have dipped to the point where their value has become negligible to even the most risk-averse of investors. At the same time, the bond market has become volatile and cannot provide the steady, reliable fixed returns it once provided investors.
For investors seeking a better choice, equity indexed annuities and life insurance products can help provide the returns on your savings that you need. These investments provide much of the stability that CDs and bonds offered, but the slightly higher risk involved gives investors a better shot at earning a higher return. For folks looking for a safe bet that has a chance of a decent payout, equity indexed annuities and life insurance are a winner.
What Is An EIA?
Equity indexed annuities, or EIAs, are financial products that are a kind of hybrid of variable and fixed-rate annuities. Their rates have greater risk than fixed rate annuities, but are less risky than a traditional variable rate annuity. Rates are linked to various market indexes like Standard and Poor’s, the Dow Jones, Russell, or a mix of various indexes.