What Is A Fixed Indexed Annuity

Indexed annuities are fixed annuities protected from downside markets with upside limited not assured.

What is a fixed indexed annuity. The investment is called a fixed-index annuity or FIA and its issued by an insurance company. Interested in Buying an Indexed Annuity. A fixed index annuity is an insurance product that allows your savings to grow in a tax-deferred manner.

They can deliver attached income rider benefits. The contract defines all terms. There is zero downside risk in negative stock market 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. Join or renew your AARP membership today for money-saving discounts. With a fixed indexed annuity investors receive a minimum interest rate over a certain number of years.

Where a fixed annuity offers one. Indexed annuities feature a guaranteed return plus a market-based return. The interest rates for indexed annuities also known as fixed-index annuities are tied to an equity index such as Standard Poors index of 500 stocks.

The key differentiator of a fixed index annuity from other types of annuities is that the growth of your savings is linked to a stock market index while your downside is limited. A fixed index annuity is a type of fixed annuity that credits interest based on the performance of an external stock market index providing the potential to earn higher interest rates than offered by a fixed annuity. A fixed index annuity is an insurance contract that provides you with income in retirement.

The fixed part of the strategy is the one with the lowest risk and most upside. It gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity. A fixed indexed annuity is a tax-deferred long-term savings option that provides principal protection in a down market and opportunity for growth.