Larry Swedroe has written an excellent article called If It Looks Too Good to be True… This article talks about another equity-indexed annuity from JP Morgan Chase. The funny thing is, JP Morgan Chase is not calling this an equity-indexed annuity. Instead, they are calling it a Principal Protection Note. Call it what you want, you can put lipstick on a pig but it is still a pig.
Even though the article is a bit hard to read due to the formatting, it is still a MUST read. Swedroe even offers an alternative for those who are extremely risk-adverse. Good stuff.