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| I feel somewhat qualified to answer your question as I have sold many millions of dollars worth of indexed annuities. I can tell you a few things about them but want to remind you that ultimately it is YOUR decision whether or not you enter into that contract with that company. First question is what is the annuity indexed to?? I would venture a guess and say that it is indexed to the S and P. If so what do you feel the stock market is going to do in the coming years? Next, what is the annual pct that the company takes? I sold for several companies and can tell you that there are MANY moving parts to an annuity and each company is different. Is there an annual percentage maximum cap that the annuity can gain in one year? The answer is yes,especially with Midland. I did not sell Midland for many reasons. I'm rambling now but don't want to go back and start over as I am writing this from my IPad. Bottom line is anybody that is selling a Midland product is a person to stay away from. They pay one of the highest commissions to the agent and it comes directly from screwing the client over. There are some good annuities out there but through the years they have slowly changed the terms to benefit themselves and not the client. For example some annuities have a VERY LOW participation rate. The participation rate is simply the percentage of your money that they put to work for you. Example: you buy a 100k indexed annuity. The stock MIT goes up 10 pct for the yr. The annuities I sold would give you a 7.5pct return and the company would keep 2.5 pct. You were guaranted to NEVER have a negative yr. However many companies including Midland had about a 75 pct participation rate meaning that only 75 pct of your money was working for you and they used the other 25 pct PLUS THEY TAKE a percentage od the gain ON TOP OF THAT!! I would hope that you NEVER do any business with somebody that would introduce you to a Midland product. Also, the Midland product had a VERY LONG contract, usually 17 yrs with them. There are many with 10 yrs or 12. The penalty for getting out if you wanted was VERY HIGH with midland compared to others. Before I forget be careful with any annuity that a bank offers. They would push annuities with low participation rates and wouldn't explain all the moving parts to the people, usually retirees. It was very sad to see the look on the peoples faces when they would ask you about their annuity that they had recently purchased. You would explain to them and show them the moving parts in their contract and their heads would just drop. The client felt safe doing business with the bank that they have gone into for years and the truth is the bank screwed them over royally. When they realize it they want to get out of it but | |
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Fixed index annuity
