No. of Recommendations: 2
told me about equity indexed annuities. His pitch made some sense, but I am skeptical. What do Fools think about these? Are they really based on equities and do they provide any advantages over indexed mutual funds like the Vanguard S&P Index fund?

they are better for the salesman...he makes even MORE money on commisions.

You are talking a 'variable annuity' and it has very high purchase fees, very high annual fees, large surrender fees,and the person who benefits the most is the salesman. On top of that, you buy whole life insurance as the 'vehicle' that this revolves around, at very high expense compared to comparable cost term insurance.

Run for the door....this financial planner is not your friend. He is in business to make money for himself by snookering in folks with things that 'sound' good, but are financial disasters waiting to happen.

You might like Suze Orman's view on annuities and variable annuities - "DON"T".....the 'worst' investment out there....

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