EIAs surpass indexes.During two historic, long and lackluster stock-market periods, the right kind of equity-indexed annuity would have outperformed the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , including reinvested dividends, according to Pete Winer, a chartered financial consultant with Covenant Reliance Producers LLC, Nashville, Tenn. A $100,000 deposit in 1966 into an EIA (Electronic Industries Alliance, Arlington, VA, www.eia.org) A membership organization founded in 1924 as the Radio Manufacturing Association. It sets standards for consumer products and electronic components. that paid 50% of the index's growth during up years without a cap on earnings would have grown to $202,905 by 1982 compared with $178,449 in the DJIA DJIA See Dow Jones Industrial Averager (DJIA). . From 1929 to 1953, it would have grown to $427,294 as compared with $147,031. The EIA locked in gains annually and protected against annual index losses. "EIAs have been unfairly maligned," Winer said, adding they are valuable for mature investors who need both downside protection and the possibility of growth. He back-tested EIA performance using EIA software from MCP (1) See Microsoft certification. (2) (MultiChip Package) A chip package that contains two or more chips. It is essentially a multichip module (MCM) that uses a laminated, printed-circuit-board-like substrate (MCM-L) rather than ceramic (MCM-C). Premium. |
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