A special class of annuities that yields returns on your contributions based on a specified equity-based index. These annuities can be purchased from an insurance company, and similar to other types of annuities, the terms and conditions associated with payouts will depend on what is stated in the original annuity contract.
Your money can only go one way with Indexed annuities—up
We each have our own ideas about how we want to live in retirement, and how much money we’ll need. For many approaching retirement, this stage of their life will last for decades, and you cannot count on a predictable stock market or economy over all of that time.
So, what’s someone planning for retirement to do? Diversify your portfolio to balance risk and growth. That includes protecting some of your money from the steep downsides of a volatile stock market. Of course, you can find risk protection in CDs, savings accounts, and the like. But, at current interest rates, your money won’t have much chance to grow.
That’s why many planning for retirement are choosing Indexed annuities. With all basic fixed indexed annuity products, your principal can never decline, but it can grow with a rising index. And because they are insurance products, indexed annuities can offer a guaranteed income for your lifetime. Imagine not having to worry about outliving your money!
Many retirees say that Indexed Annuities give them the peace of mind that they lost, along with much of their nest eggs, during the volatile markets of 2008 and 2009. That alone makes them worth a look.