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URL:  http://boards.fool.com/equity-indexed-fixed-annuities-proscons-28184050.aspx

Subject:  Equity Indexed Fixed Annuities - Pros/Cons Date:  12/23/2009  11:03 PM
Author:  Dueceman1 Number:  235 of 294

Apologies in advance. I am brand new to MF and unfortunataly a financial novice. I am almost 50 and planning to retire in ~10 years. I am extremely conservative, focused on priciple preservation and accept the upside limits that come with that. I have no debt, am fully maxed out in 401K, don't qualify for Roth and in a reasonalby high marginal tax bracket with very little opportunity to reduce my tax burden. In addition to a mix of mutual funds and fixed income products in my 401K, I am invested in Jumbo CD's which are laddered.

I am now considering the purchase of an Equity Indexed Fixed Annuity from Midland National Life (14 yr) and would begin to annuitize in my early 60's. However, I am very leery, as I have heard for years the horror stories on annuities, especially variables (high fees and commissions, unscrupulous finanical advisors on commission, etc.) If anyone out there has any opinions on Equity Indexed Fixed Annuities in general or this Midland specific product, I would be most grateful. I accept that in return for safe principle I am limiting my upside, but also getting tax deferred growth (I am currently invested in CD's....).

I am also interested in opinions on annual point to point annual vs. monthly and if indexing which index to peg performance against. Again, thanks in advance and any insights greatly appreciated!
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