No one knows for certain how equity index annuities will perform in a bad bear market, but EIAs have a much better record than bank certificates of deposit over the past 5 years.[@@]
Researchers at Advantage Compendium Ltd., St. Louis, have published that conclusion in a report on an informal review of data from actual EIA customer statements.
The researchers found that the value of assets in the sample EIAs has increased an average of 24% over the past 5 years, compared with an average total increase of just 14% for the value of assets held in bank certificates of deposit, the researchers conclude.
