Examine the different types of annuities and see if an annuity is the right fit for your retirement portfolio.
The returns from these annuities are based on the increase in the stock or equity index, such as the S&P 500. If stocks go up, you get a share of the profit. If the stocks fall, you won’t lose any money, since your contract assures you minimal returns of principal amount plus pre specified interest (usually 3%). In effect, you have a chance of making a profit, but you are not liable to bear any losses. So who does? And how can someone offer you stock market profits without putting your investment at risk?