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LISTEN, UNDERSTAND, RESEARCH, HELP. Money management has a new reality. Financial-planning efforts must consider “the whole client.” We offer a multi layer approach that starts with education. We strive to gain your trust then deliver the results you seek. At Gelinas Financial Group, Inc., our passion is supporting our clients by adding value: You need information to make correct decisions. We’ll help you achieve higher levels of success and better process management through cutting-edge solutions, training, mentoring, and continuing education. Our objectivity and independence mean you get the financial-planning and risk-management solutions that meet the unique demands of your present situation. We offer our expertise in the following areas: Financial Planning Retirement Planning Insurance Investment Coaching Annuities More Hope is not a strategy. We meet with our clients regularly to scrutinize their investments and make adjustments.
Indexed Annuities 101
Gelinas Financial Group, GA, AnnuitiesWhat are indexed annuities? These are a special type of annuity that offers return yields on your purchase price. The returns that are yielded are based on a special equity-based index. You can buy indexed annuities from insurance companies just like regular annuities. The terms of indexed annuities are also similar to regular annuities, and will always be based on what is written in the original annuity contract. Regular annuities offer a guaranteed income for either a specified period of time or for a specified amount each month. Indexed annuities offer monthly payments based on the special stock index the insurance companies use with these investment products. However, the insurance company that sells the indexed annuities offer a guaranteed minimum payment, so if the stock index does down, the risks to the owner of the annuity will be mitigated. However, the monthly payments may go up if the stock index performs well. So the amount of money one can make with an indexed annuity can potentially be more than with a regular annuity. However, other insurance companies put a cap on the maximum amount of interest an indexed annuity can receive, regardless of how well the stock index is performing. Even someone who gets one of these annuities will still have the opportunity to make more money than with a regular annuity, as long as the fee-related deductions on the annuity are not too high. The main difference between indexed annuities and regular annuities is the interest that can be earned on them. Even if the amount of interest earned ends up being small, it is still a little bit of extra money that a regular annuity would not receive. Every little bit of extra money adds up, so an indexed annuity may be a good choice for someone who needs the guaranteed income and enjoys the thrill of knowing each check may contain a little bit more than expected.
Shawna Kreis
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