Equity-indexed annuity products are sold by insurance agents, frequently by Authority (FINRA) Investor Alert, Equity-Indexed Annuities: A Complex Choice 26 Jan 2020 Indexed annuities, often called equity-indexed annuities, offer limited upside Check out FINRA's Investor Alert on indexed annuities as well. NASAA Informed Investor Alert: Annuities - Are you an informed investor? selling them must be registered with the Financial Industry Regulatory Authority ( FINRA). For example, fixed and equity indexed annuities may have no up-front Read their Investor Alert concerning variable rate annuities. Included is a link to information about equity-indexed annuities. Quick Links. Enforcement News 2 Benjamin P. Edwards is the Director of the Investor Advocacy Clinic at available at http://www.finra.org/investors/alerts/equity-indexed-annuities a- complex-. Before investing, investors should determine which, if any, of these products suit their future One type of deferred annuity is an “equity-indexed annuity. The SEC, Financial Industry Regulatory Authority (FINRA) and Minnesota Department
Notice to Members 05-50, Member Responsibilities for Supervising Sales of Unregistered Equity-Indexed Annuities; National Association of Insurance Commissioners' Buyer's Guide to Equity-Indexed Annuities. Securities and Exchange Commission's Variable Annuities: What You Should Know; To receive the latest Investor Alerts and other important investor information sign up for Investor News.
Before investing, investors should determine which, if any, of these products suit their future One type of deferred annuity is an “equity-indexed annuity. The SEC, Financial Industry Regulatory Authority (FINRA) and Minnesota Department Some people are opting to buy fixed or indexed annuities from the start, while others are making 1035 exchanges from a variable annuity that they currently own. structures, such as fixed or equity-indexed annuities. The alert resulted from calls made to FINRA's helpline for senior investors. 8/2015 Sweep Letter Relating 31 Jan 2019 or commissions, and are periodically the subject of investor alerts from regulators. Indexed annuities are often pitched as a way for older investors to At brokercheck.finra.org, you can review the record of brokers selling variable annuities. Sometimes called fixed-indexed annuities or equity-indexed 3 Jun 2014 Equity-Indexed Annuities—A Complex Choice (FINRA Investor Alert). Your guaranteed return is only as good as the insurance company that The .gov means it's official. Federal government websites often end in .gov or .mil . Before sharing sensitive information, make sure you're on a federal Overview; Variable Annuities Stock Research · Morningstar Equity Research Second, some ETNs promise to deliver the returns of a particular index that isn't For investors committed to such a niche investment, an ETN might be the only (http://www.finra.org/investors/alerts/exchange-traded-notes-avoid-surprises ).
As can be seen from this example, with indexed annuities you are giving up equity market return potential in exchange for downside market protection. In reality, indexed annuity returns are typically comparable to a conservative investment product's returns, and not to the stock market, a stock market index, or stock fund returns.
3 Jun 2014 Equity-Indexed Annuities—A Complex Choice (FINRA Investor Alert). Your guaranteed return is only as good as the insurance company that The .gov means it's official. Federal government websites often end in .gov or .mil . Before sharing sensitive information, make sure you're on a federal Overview; Variable Annuities Stock Research · Morningstar Equity Research Second, some ETNs promise to deliver the returns of a particular index that isn't For investors committed to such a niche investment, an ETN might be the only (http://www.finra.org/investors/alerts/exchange-traded-notes-avoid-surprises ). Notice to Members 05-50, Member Responsibilities for Supervising Sales of Unregistered Equity-Indexed Annuities; National Association of Insurance Commissioners' Buyer's Guide to Equity-Indexed Annuities. Securities and Exchange Commission's Variable Annuities: What You Should Know; To receive the latest Investor Alerts and other important investor information sign up for Investor News. Annuities come in two types: fixed and variable. With a fixed annuity, the insurance company guarantees both the rate of return and the payout. As its name implies, a variable annuity’s rate of return is not stable, but varies with the stock, bond, and money market funds that you choose as investment options. FINRA Investor Alert: Equity-Indexed Annuities: A Complex Choice.pdf Events & Training; Filing & Reporting; Compliance Tools; For Investors; FINRA Utility Menu. About FINRA; Careers; Media Center; Contact Us; BrokerCheck; ARBITRATION & MEDIATION. FINRA operates the largest securities dispute resolution forum in the United States.
minimum value to the purchaser.14 The specific features of indexed annuities vary from 14 FINRA Investor Alert, supra note 13; National Association of Insurance Commissioners, Buyer’s Guide to Fixed Deferred Annuities with Appendix for Equity-Indexed Annuities,
Indexed annuities offer a minimum guaranteed interest rate combined with an interest rate linked to a market index, hence the name. Many indexed annuities are based on broad, well-known indices like the S&P 500 Composite Stock Price Index. But some use other indexes, including those that represent other segments of the market. Some indexed annuities allow investors to select one or more indexes. Because of the guaranteed interest rate, indexed annuities give you more risk (but more potential ORIGINAL FINRA ALERT CAN BE FOUND AT: Equity-Indexed Annuities- A Complex Choice My corrections to the FINRA Alert are as follows: These products are not called “equity-indexed annuities” or EIAs. Indexed annuities have not been referred to as “equity indexed annuities” since the late 1990’s. FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this Investor Alert to inform investors about social sentiment investing tools and highlight their risks. This Alert provides tips to consider before using tools that analyze or aggregate information from social media sources to make investment FINRA’s investor protection alert, Equity-Indexed Annuities—A Complex Choice, points out that among other problems depending on the specific market conditions an investor may earn far less than she might with a fixed annuity in a poor market while profiting far less than the return Fees: Then there are surrender charges. In some indexed annuities, surrender charges can run as high as 20% and last for 15 or more years. So you may not have access to all of your money without paying steep penalty charges for a long, long time. The Financial Industry Regulatory Authority (FINRA) Some indexed annuities specify that investors may lose money if the market index goes down in value. If they do, the indexed annuity may offer some limited protection against that risk. Some common protections include: Floor. This protection limits investor exposure to a set percentage of potential loss.
FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this Investor Alert to inform investors about social sentiment investing tools and highlight their risks. This Alert provides tips to consider before using tools that analyze or aggregate information from social media sources to make investment
ORIGINAL FINRA ALERT CAN BE FOUND AT: Equity-Indexed Annuities- A Complex Choice My corrections to the FINRA Alert are as follows: These products are not called “equity-indexed annuities” or EIAs. Indexed annuities have not been referred to as “equity indexed annuities” since the late 1990’s. FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this Investor Alert to inform investors about social sentiment investing tools and highlight their risks. This Alert provides tips to consider before using tools that analyze or aggregate information from social media sources to make investment FINRA’s investor protection alert, Equity-Indexed Annuities—A Complex Choice, points out that among other problems depending on the specific market conditions an investor may earn far less than she might with a fixed annuity in a poor market while profiting far less than the return Fees: Then there are surrender charges. In some indexed annuities, surrender charges can run as high as 20% and last for 15 or more years. So you may not have access to all of your money without paying steep penalty charges for a long, long time. The Financial Industry Regulatory Authority (FINRA)