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Yes I purchased a FIXED INDEX ANNUITY about 20 years ago for a 7 year period and actually came out good with it and renewed it for another 7 year period.Here is how it worked.The funds deposited were tied to the performance of the SP500 each year over the 7 years and guaranteed to at least equal to a 3% compound annual return of 90% of the deposit.It did have a cap to the annual S&P gain of 12% that could be credit at the end of each year and no negative credit.I actually got around a 6.5% compound annual return the first 7 years.The next 7 years they would only credit 60% of return with a 12% cap but did manage to about a 4% compound annual return.I passed after the 14 year but remember looking at the Alliance Annuity and from memory it was like the one you are describing.I think in the guaranteed part you would get the 7.5% if you held it for about 5-10 years cant remember but you had to annuitiz it over another 10 years.In any case it didnt seem to me to be that attractive.The only advice I will give is make very sure you understand all parts and how they work.
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