Understanding Indexing

The concept behind indexing is to establish financially secure “investment” solutions that take advantage of Market growth while avoiding the devastation caused by Market downturns. Indexing does not invest directly in the Market but rather uses the averages over a period of time usually from 20-25 years. Indexed funding investments usually have caps on the returns at around 13-15% this allows the financial firm to manage the funds with a profit while the clients still have a lucrative return on their investments. The average of the S&P 500 in the last 25 years has been between 7.5%-11% depending on which index used.

There are two tested Index vehicles that have been used extensively, especially over the last 5 years, to secure savings and establish a guaranteed income for life. These two vehicles are Index Annuities with a Guaranteed Income for Life Rider and Indexed Equity Universal Life Insurance that can provide not only protection for your loved ones when you die but can also grow a substantial savings that can be used as a retirement vehicle with TAX FREE distributions.