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  • Writer's pictureDarcy Bergen

What Is the Pre-Eminent Rate on Index Annuities?

Index annuities, according to Darcy Bergen, offer the opportunity to profit from the market's upward movement while avoiding its downward movement. Despite the fact that they do not directly invest in the index, they use a formula to forecast how much an investment will increase in value over time. As a result, the profits from an index annuity are not as big as the profits from investing directly in the index. Nonetheless, this type of annuity has some upside potential while having no drawbacks, which may be appealing to you.


Darcy Bergen feels that index annuities allow you to accumulate cash value over time by linking the performance of three equity indexes to a fixed account.  However, if you withdraw money before reaching the age of 59 1/2, the money will be regarded as ordinary income and taxed at the standard rate. If you withdraw funds from your account before the age of 18, you will be liable to an IRS penalty tax. Meanwhile, if you can't wait that long, index annuities are a great way to improve your retirement funds.


Before investing in an index annuity, be sure you understand the risks and potential returns. When it comes to index annuities, the surrender term, which can range from six to ten years, is a major cause of concern. If you withdraw your money too soon, you may face surrender charges or a decrease in the value of your investment. The best advice is to opt for a product with a short surrender period to lower the amount of money you pay in surrender fees. Similarly, if you decide to withdraw your money early, the market index may fall, causing you to lose money.


Darcy Bergen considers that the market is volatile, but that this risk can be mitigated by diversifying your investments. Index annuities can help you build a portfolio that is both diverse and stable in nature. You can also lock in numerous indexes at various times of the day to maximize your rewards on various assets. Make sure you are not investing money that you do not have. You'll be surprised at how much money you'll wind up making. It is advantageous to examine all of your options and choose a product that matches your needs.

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