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Can a 7% Annuity Outperform an 8% Annuity?

Albert Einstein on Compound InterestIt may sound like a trick question, but the answer is simple.

An account earning 8% simple interest earns less over time than an account earning 7% compound interest. A popular hybrid annuity advertises an 8% minimum guaranteed simple interest rate, but the savvy consumer will recognize the better value lies in another strategy with a 7% compounded minimum interest rate.

In addition to 100% principal protection, this contract offers guaranteed lifetime income, an 8% immediate bonus, the ability to earn more than the 7% minimum guarantee, and income multipliers if you become unable to perform two of the basic daily living tasks.

Simple Interest vs Compound Interest

To learn more, click the button to request a time to visit with me either in person, or over the telephone. I look forward to hearing from you!

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~ Cathy DeWitt Dunn
President and CEO
DeWitt & Dunn, LLC
15455 N. Dallas Parkway
Suite 240
Addison, TX 75001
(972) 473-4700


Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer.


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