Variable Annuity Comparison

are there major drawbacks?

Claim is that an annuity indexed to the S&P has averaged 9.1% yearly. And can never go negative even when the Market crashes. Too good to be true?

They usually dont have any fees (annual or funds) attached to them like VAs do. And they dont have the downside risk since they are not actual funds. Granted they dont have the diversity that a VA with 15 different funds has, but for a basic need for someone who is afraid of the market to begin with, it sound pretty good. Your thoughts?

When one will likely earn long-term gains comparable to the market without any risk of loss, what else could be better in today’s environment?
Net Advisor confuses attributes of EIAs with those of variable annuities. The only potential for loss of principle or previous gains is an insurer’s insolvency. Insurance companies have, and can, go under, but no insurance or annuity policyholder has EVER lost value due to a company failure (anyone with Net’s alleged experience knows why). Other than this virtual impossibility, there is no way to lose value in any fixed annuity.
High fees: Guarantees and illustrations are presented net of fees. The numbers are completely transparent. Commissions aren’t high for a one-time, versus transaction fees in most investments.
Free lunch: The companies credit in such a way as to minimize their risk. Over the last decade, however, many EIAs indexed to the S&P actually outperformed that index for three reasons:
1. They offered a bonus on initial deposit.
2. In years when the S&P lost value, the annuities indexed to it didn’t; they earned 0.
3. Gains credited can’t be lost in future downturns.

Indexed Annuities are fixed and so would offer a guarantee of principle, while allowing for risk-free gains linked to stock indexes

They usually dont have any fees (annual or funds) attached to them like VAs do. And they dont have the downside risk since they are not actual funds. Granted they dont have the diversity that a VA with 15 different funds has, but for a basic need for someone who is afraid of the market to begin with, it sound pretty good. Your thoughts?

I understand the philosphy of avoiding variable annuities most of the time due to the high fees but what’s the deal with fixed and indexed annuities? Anyone who has had a fixed annuity over the last decade is mountains ahead of someone who has had mutual funds. There are no fees outside of the surrender periods and they can also be set up in roth IRA’s. If the surrender penalty is within a persons investment horizon, why don’t financial planners use these products more often? Everything I have researched shows these are very safe investments, have upside market potential (indexed I mean), zero fees, and grow tax deferred. Everyone I have talked to that owns a fixed annuity is smiling right now. Please explain

I am a new producer and want to provide my clients a good safe investment. My average client is 60 years plus. I am interested in the fixed and indexed annuities. Please give me your advise or opinions on the companies and products you feel best about putting your clients in. Thanks and have a great day. Scott