How Can Annuities Leverage a Stock Market Index?
Thomas Brock explains that fixed indexed annuities tie growth to indices like the S&P 500, letting you benefit when the market rises while protecting you with a floor when it falls.
Video Transcript
One of the biggest applications for index linked investing happens to be with annuities. Annuity products are defined in different ways, but fixed indexed annuities will allow you to tie your interest crediting to key indices like the S and P five hundred. If you do this, as the S and P five hundred performs well, your annuity performs well. But the nice thing about it is you have a floor. So when the S and P five hundred does badly, that annuity puts a floor on your loss exposure.
