Annuity contract and index
ALLIANZ POWERHOUSE, S&P 500
Annual ratchet, 125% participation rate. No fees, but 15% cap on returns. Best for bear or sideways markets.
ING USG GENERATION PRO, S&P 500
Point-to-point calculation of returns, 100% participation rate minus 1.7% annual fee. Best for bull markets.
MIDLAND NATIONAL DIRECT 10, Multiple
Annual ratchet, 100% participation for four different indexes. Fees vary greatly by index--from 1.5% for S&P 500 to 6% for the Russell 2000.
Data: Advantage Group; www.annuityratewatch.com