What is Indexing


“Indexing” is a passive form of fund management that has been successful in outperforming most actively managed mutual funds.  It is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor’s 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.

Indexes are great tools for telling us what direction the market is taking and what trends are prevailing. The thinking behind index funds has some academic substance to it. For years, many academics have been saying that it is impossible to consistently beat the market without raising your risk level – a theory known as Efficient Market Hypothesis (EMH). So in 1975, John Bogle took the stance that “if you can’t beat ’em, join ’em” and created the first low-cost mutual fund that mirrored the S&P 500 index.



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Incorporating indexed annuities into your overall retirement plan can afford you the following benefits:

  •  Safety and guarantee of principal
  • Minimum guarantees
  • Tax deferral
  • Penalty-free withdrawal and liquidity options
  • Guaranteed lifetime income*
  • Stock market index-participation growth
  • Probate avoidance
  • Ability to select and customize enhanced features, such as:
    • Guaranteed growth rates
    • Lifetime income (Based on either single or joint life)
    • Death benefit
    • Health care protection