What is the value of using such a tool? By
using past index performance it is possible to illustrate what different types of
investments would have done based on past performance. This is invaluable
information for helping clients with investment decisions now and in the future.
Although past performance is never an indicator of future performance for markets
of any kind, the knowledge gained by seeing past performance is essential in making
proper decisions today.
Index Blaster uses real data for the 5 major US Indices: DJIA, S&P
500, Nasdaq 100, Russell 2000, and S&P MidCap 400, and the "Dow Euro" Index.
Data for the US Indices dates back 1991. Data for the "Dow Euro" Index dates
back to 2002. Index Blaster allows the use of this US and European
Indices data to show real calculations of Market and Indexed Annuity type investments.
There is also a Fixed calculation that models a fixed annuity or a CD at a bank.
By comparing different investment strategies side by side, as well as contribution
and withdrawal options, it is possible to assess risk and growth potential
of each type of investment based on past performance.