A market value adjusted annuity is one that combines two desirable features- the ability to select and fix the time period and interest rate over which your annuity will grow, and the flexibility to withdraw money from the annuity before the end of time period selected. This withdrawal flexibility is achieved by adjusting the annuity's value, up or down, to reflect the change in the interest rate "market" from the start of the selected time period to the time of withdrawal.
Sunday, July 20, 2008
Types of Fixed Annuities
An equity indexed annuity is a type of fixed annuity, but looks like a hybrid. It credits a minimum rate of interest, just as a fixed annuity does, but its value is also based on the performance of a specified stock index, usually computed as a fraction of that index's total return.
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