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URL:  http://boards.fool.com/typically-with-these-products-your-monthly-and-22811959.aspx

Subject:  Re: Equity Indexed Annuities Date:  7/28/2005  3:07 PM
Author:  2old4bs Number:  47068 of 75383

Typically with these products your monthly and annual upside is severely limited, and your downside is not (subject to the guarantee). Suppose you start out with a $10,000 balance. In January the market is up 10% but due to the "monthly cap" you are only up 4%. In February the market is up another 10% (21% total) but due to the monthly cap you're only up 8.2% total. In March the market is up another 10% (33% total) but due to the "annual cap" you're only up 10% total.

What a ripoff--particularly when you consider that the biggest market moves usually take place over just a few days, or weeks at the most! Sheesh,

2old

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