Invest in Stocks and Never Lose - Investment Advice

Invest in Stocks and Never Lose, Is this possible? - Investing

Yes! There is a way in which you can "Invest in Stocks and Never Lose". Senior citizens and many fixed income people do not invest in high returns stock market because of the risk factor. They remain limited to various fixed deposit schemes. They would invest in the stock market if there was less risk involved.

Invest in Stocks and Never Lose, Is this possible? - Investing, continued...

Today most Insurance companies offer "Equity Indexed Annuities". These schemes allow you to never lose in the stock market. This is how it works:

If the stock market rises your Annuity also rises. But if the stock market falls, your Annuity does not fall but remains the same!

The insurance company records the stock market index every month. If the index goes up, your annuity account receives plus points, if it goes down your account receives minus points. At the end of the year your points are added up. If the final total is positive, your annuity value is increased, but if the final points total is negative, your annuity value remains the same.

So if you invested $20,000 to start with and the stock market performed positively during the year, your annuity value could be worth $30,000, $40,000 or more depending on how well the stock market performed.

But if the stock market went down, then your annuity value would still be worth the same, that is $20,000.

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