Fixed Index Annuity

Fixed Index Annuity

A fixed index annuity is considered to have the same benefits of a fixed annuity, but a fixed index annuity can be combined with a chance to earn interest on changes within the market. A fixed index annuity is a good choice if you want to further grow your annuity, but want to make sure that you don’t lose any of your money in the market. A fixed index annuity uses a special formula to calculate the interest based on stock performance, where the index is used as a benchmark to offer protection against the ups and downs of the market. A fixed index annuity can offer some great benefits such as protection for the principal of your annuity, your growth can be tax deferred, a choice when using crediting methods, death benefits options and additional options that can help preserve your assets and income for retirement.


There are also some disadvantages of a fixed index annuity such as there can be an IRS penalty on money that is withdrawn before you turn 59 ½ years of age, a fixed index annuity is not FDIC insured and does not gain the full upside of the stock market, and the caps on declared interest rates can change on an annual basis. A fixed index annuity can be a powerful financial tool that can further meet your long term retirement goals. Consult United Retirement Advisors Group to discuss your options on a fixed index annuity.