The Truth About Buying Annuities

Chapter 10. More about equity indexed annuities

	“There’s no business like show business, but there are several businesses like accounting.”
	--David Letterman

One of the obviously key elements in any Equity Indexed Annuity is the particular stock market index used to determine the income to be earned from the specific annuity that you choose. Many of us are already familiar with the various indexes used as a measuring rod of Equity Indexed Annuities. What follows are some of the most commonly used indexes.

Dow Jones Industrial Average

Perhaps the most familiar, but not necessarily well-understood, stock index is the Dow Jones Industrial Average. This originated in 1896 and was made up of only 12 companies, including such stalwarts as American Cotton ...