If you’re beginning to think about saving for retirement, you might be wondering what your options are. There are many different types of retirement plans available and selecting the right one can be difficult. Fixed index annuities are chosen by many because of their safety and guarantee.
What is a fixed index annuity?
A fixed index annuity provides the guarantees that come with fixed annuities but is combined with the opportunity to earn interest based on changes in an external market index. But because you are not actually participating in the market, the money in your annuity is not at risk. With this option, you have the benefits of a rising market index, but don’t have the risk that’s associated with investing directly in the stock market.