What Is A Fixed Index Annuity

Shopping for a fixed index annuity may seem overwhelming but it doesnt have to.

What is a fixed index annuity. A fixed indexed annuity is a long-term savings insurance contract that offers two ways of earning interest also called crediting strategies. Ad Get Indexed Annuity Definition. With a fixed indexed annuity investors receive a minimum interest rate over a certain number of years.

An index annuity also known as a fixed index annuity or an indexed annuity pays a fixed rate of return based on a specific financial markets performance. Ad Get Indexed Annuity Definition. For this the insurance company offers a fixed interest rate for a specific number of years similar to a certificate.

Join or renew your AARP membership today for money-saving discounts. It gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity. This means fixed index annuity owners cant lose money due to market volatility and downturn.

A fixed indexed annuity FIA is an insurance product which produces a pension-like guaranteed income in retirement while also offering some liquidity and the opportunity to benefit from market growth. The investment is called a fixed-index annuity or FIA and its issued by an insurance company. What makes it unique is that in addition to being a tax-favored accumulation product it shares common.

You can only lose your retirement savings to fees and spending down the account. With a fixed index annuity your payments are based on the returns of a stock market index like the SP 500 or the Dow Jones Industrial Average. A fixed index annuity is an insurance contract that provides you with income in retirement.

Fixed index annuities FIAs are actually quite flexible and provide many options for retirees. With a fixed index annuity your payments are based on. This product sounds like the best of both worlds an income which doesnt stop and the ability for that money to grow as it would in the market.