Wealth &
Protection Planning

Equity-Indexed Annuity

An equity-indexed annuity earns interest that is linked to a stock or other equity index.  One of the most commonly used indices is the Standard & Poor's 500 Composite Stock Price Index (the S&P 500). 

An equity-indexed annuity is different from other fixed annuities because of the way it credits interest to your annuity's value.  Most fixed annuities only credit interest calculated at a rate set in the contract.  Equity-indexed annuities credit interest using a formula based on changes in the index to which the annuity is linked.  The formula decides how the additional interest, if any, is calculated and credited.  How much additional interest you get and when you get it depends on the features of your particular annuity. 

Contact a STRIVE Wealth Advisor for more information about equity-indexed annuities. 

In the event of a withdrawal or distribution, interest earned on an annuity is taxed as ordinary income. Withdraals or distributions made prior to age 59½ may be subject to a 10 percent income tax penalty.

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