Indexed Annuities

What is an Indexed Annuity?

An Indexed Annuity (sometimes called a fixed indexed annuity) is a tax-deferred, long-term savings option that protects your principal from loss no matter what the market does and provides an reasonable opportunity for growth. Assets are not directly invested in a specific stock market index, but they do offer opportunity for growth based on the performance of an index. 

Who should consider getting a Indexed Annuity?

  • People who want a better return on their money than a bank can provide.
  • People who won't like need the money they deposit for a few years.
  • People who want to make sure their money and interest will definitely be there at the end of the guaranteed term.
  • People who want to set aside money for a specific future purpose 
  • People who hate losing money
  • People who want to diversify their portfolio
  • People who want their money to grow for more than 5 years. 

More Information about Indexed Annuities

Indexed Annuities are financial products offered by an insurance company. They are backed by the investments and resources of the issuing company. While Indexed annuities are not backed by the federal deposit insurance corporation, insurance companies follow very strict financial regulations and generally have about four times as much in reserves when compared with a typical bank. Index annuities have a guaranteed minimum interest rate, but they also credit interest based on the performance of a stock index. It is important to understand the interest crediting strategy of specific indexed annuities before you decide if they are right for you. It is also important to know what index your returns will be based on. Two of the most common crediting strategies are Caps, and Participation rates, to learn about these, or other crediting strategies please talk with an advisor or visit our index crediting strategies page.  Indexed Annuities are also designed as medium or long term retirement solutions, so they only allow you to withdraw small portions of your account in the initial years without penalty. To learn more about surrender periods, see our FAQ page, or ask one of our advisors. 

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