EIA's - Seeking A Better Idea

Q. Jeff--just found your website from research on Soundmind Investing's website. I had not heard of equity-indexed annuities until I was given a presentation by a financial advisor from our church...your rising interest rates article said you had a better idea??? Thanks.

A. Many EIAs only have a guaranteed minimum of 3% (if that). You can get this on money market accounts now.

As far as alternatives, it depends on if you are needing income or growth, your age, etc. I typically use an array of investments with my clients that include select Exchange-Traded Funds, REITS, Bonds, Closed-End Funds and other High-Yielding securities.

With the ETFs, I utilize a proprietary money management system I developed that is designed to basically give the benefits of EIAs (less market risk and participation in market growth) without set-up fees, time commitments, surrender penalties or commission.

For the income portion of the portfolio, I employ a diversified mix of higher-yielding securites. Most advisors and investors haven't even heard of some of them. The dividends on these can easily range from 6-10%+.

Another example is a REIT that I use that doesn't fluctuate in price and pays a monthly dividend between 6-7.25%.

Through broad diversification in properly selected investments you can retain complete control and access to your money while still getting the risk reduction you are looking for.

Thanks for your question.

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