Since Annuity FYI has added equity linked CD investments to our recommendations, it is important to explain how the recommendations come about. Equity linked CDs have a lot of the same benefits as annuities so they can be easily compared. Those benefits include principal protection, market upside participation, and a low cost. Annuity FYI believes that an equity linked CD can be an important part of retirement portfolios. They are preferred over fixed/equity-indexed annuities because of their low cost, short time commitment, and the fact that they are FDIC insured.
The equity linked CD criteria used to evaluate the products and companies selling them is straightforward. A participation rate with the corresponding index, for example the S&P 500, higher than 90% is preferred. A low spread of 1% or less also indicates a preferred equity linked CD. Annuity FYI looks for equity linked CDs without a performance cap rate and with a maturation period of six years or less. When evaluating the insurance company selling the equity linked CD, their customer service skills, company management, and the ease in which you can access your account are all taken into consideration. Contact an expert for more information regarding equity linked CDs.