Equity-indexed annuity

Open for any wiki editor. --LadyGeek 21:43, 28 February 2012 (CST)

A fixed indexed annuity (FIA), also known as an "indexed annuity" or "Equity Indexed Annuity" (EIA) is a fixed annuity whose interest rate is based, in part, on the performance of an equity, commodity, or bond index. The most common index used in most contracts is the S&P 500 index of common stocks. FIA's were introduced in the mid-1990's and have exhibited steady growth in the marketplace. Fixed indexed annuities are complex instruments with combinations of features which affect the crediting of interest.

Aggressive sellers of these annuities have been cited by critics for abusive sales practices. As of July 2010, the SEC and state insurance departments were contesting which regulator should have regulatory control over this product.

Forum discussions

 * Equity Indexed Annuities
 * Equity Indexed Annuities Redux

Articles

 * A Forbes.com tutorial series by forum member Mel Lindauer:
 * Annuities: Good, Bad Or Ugly?
 * How To Cut The Cost Of A Variable Annuity
 * For Some Retirees, This Annuity Makes Sense
 * The Truth About Equity-Indexed Annuities
 * Variable Annuities Don't Belong In Retirement Plans
 * Fixed Deferred Annuities: CDs With Gotchas