Equity-indexed annuities

The flavor du jour of investment hustlers, these insurance contracts combine the supposed safety of a guaranteed rate of return with the potential of profit if the stock market takes off. Unfortunately, they often carry huge commissions and employ tricky calculation gimmicks that chisel away at your potential profits.

For help

The Securities and Exchange Commission Web site, at www.sec.gov, has a Q&A page on this topic; click on Investor Information for the gory details.