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From 1935 until today, the stock market would have turned \$75 into \$139,354.22. An equity indexed annuity would have returned \$78,163.33

I'm curious if you could post the Excel spreadsheet...

That 4% floor is pretty nice actually... Yes, you miss out on some 20%,25%,30% gains (getting only 15%), but you also never get the big -10%, -15%, -20% years... and that makes a HUGE difference...

Here's why... If you lose 10% one year... and then make 20% the next year, you're actually only up 8% after the two years...

\$1000 -> \$900 -> \$1080

Making 4% that first year, and then only 15% the next year means you're up 19% after the two years...

\$1000 -> \$1040 -> \$1196

Look at the numbers I posted for the last ten years... Even if you START with the up years, missing the bad years completely really really helps...

Say the market makes 20%, 20%, 30%, -10%, -2%, %18

That gives you \$1000 -> \$1200 -> \$1440 -> \$1872 -> \$1684 -> \$1650 -> \$1947

With a 4% floor, 15% ceiling, 15%, 15%, 15%, 4%, 4% 15%

That gives you \$1000 -> \$1150 -> \$1322 -> \$1520 -> \$1581 -> \$1644 -> \$1890

Which really isn't that bad for the peace of mind...

Of course, I just made these numbers up... I'd still like to see historical data beyond the last ten years that I already posted... but 4% is a pretty good number.

I'd mostly be worried about the annuity company going under...

Give us the name of this annuity.. I'm curious enough to investigate. (For the record, I normally HATE annuities - I'm a low cost Vanguard fan myself)

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