Fixed Indexed Annuities: Growth Without Market Losses
Many retirees want the opportunity to earn more than traditional fixed investments while avoiding the ups and downs of the stock market.
A Fixed Indexed Annuity (FIA) offers exactly that.
How Does a Fixed Indexed Annuity Work?
Instead of earning a fixed interest rate, your earnings are linked to a market index like the S&P 500. If the index increases, your annuity may earn interest according to the contract’s participation rate, cap, or spread.
If the market declines? Your principal does not lose value because of market performance.
Benefits
- Principal protection
- Opportunity for higher interest credits
- Tax-deferred growth
- Guaranteed minimum values
- Optional lifetime income riders
Is a FIA Right for You?
This type of annuity may be ideal if you:
Want higher growth potential
Don't want direct market risk
Need retirement income later
Prefer predictable retirement planning
Common Questions about Fixed Indexed Annuities
Can I lose money in a fixed indexed annuity?
Market losses do not reduce your account value, although returns may be limited by contract features such as participation rates or caps.
Are returns guaranteed?
Your principal is protected, but annual credited interest depends on index performance and contract terms. (Actuary.org)