A fixed indexed annuity is an insurance product designed for long-term retirement savings that can create a guaranteed stream of income or “retirement paycheck” to supplement your other income sources, such as Social Security, pensions, 401(k)/IRAs and personal assets. Plus, you have the potential to grow your income amount over time, while protecting any gains from loss due to market downturns.
FIAs may be ideal if you’re looking to:
FIAs earn interest based in part on any upward movement in one or more reference stock market indices, such as the S&P 500. If the net change in the index over a given crediting period is negative, you would earn zero interest credits for that period, but never less than zero. In order to provide that valuable protection, indexed interest credits are calculated using a formula that may include: