What is a Fixed Index Annuity?

Common
Mistakes
Retirees are
Making Today:

1. Understanding how much income they'll need after they retire.

2. Understanding how long they will live.

3.Overestimating how much they can withdraw from their portfolio without depleting it.

A Fixed Index Annuity is a fixed annuity, either immediate or deferred, that earns interest of provides benefits that are linked to an external market index. A market index in an unmanaged group of stocks or bonds that represent a segment of the investment market. Investors cannot invest directly in an index. One of the most commonly used indices is Standard & Poor’s 500 Composite Stock price Index (S&P 500), which is an equity index. The value of any index varies from day to day and is not predictable.

When you buy a fixed index annuity, you own an insurance

contract. You Are not buying shares of any stock of the index.

If the market index goes up, you get interest tied to the market index depending upon the annuity’s interest calculation method. If the market goes down, your credited interest and principal stays exactly where it was prior to the market going down, protecting your principal and interest from any loss. Indexed annuities are designed to meet retirement and other long-term goals. They are not suitable for meeting short-term goals because substantial taxes and surrender charges may apply if you withdraw your money early.

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