Annuities

Fixed and Indexed Annuities

Annuities are financial products designed to provide guaranteed income in retirement. Both fixed and indexed annuities offer safety and growth potential — but in different ways.

Fixed Annuities

• What it is: An insurance contract that guarantees a fixed interest rate for a set period of time.
• How it works: Your money grows at a predictable rate, regardless of market performance.
• Best for: Conservative savers who want security and guaranteed returns.
• Key Benefits:
  • Guaranteed interest rate
  • Principal protection (you won’t lose your initial investment)
  • Steady, reliable income in retirement

Indexed Annuities

• What it is: An annuity where growth is tied to the performance of a market index (such as the S&P 500®), with built-in protections.
• How it works: When the market goes up, you can earn interest based on a portion of that growth. When the market goes down, your principal is protected (you won’t lose money due to market losses).
• Best for: People who want growth potential that outpaces fixed rates, but without direct exposure to market risk.
• Key Benefits:
  • Potential for higher interest than fixed annuities
  • Protection from market losses with a guaranteed floor (usually 0%)
  • Tax-deferred growth
  • Can provide guaranteed lifetime income options

👉 In short:

Indexed Annuities = Safety + Growth Potential (tied to the market)

Fixed Annuities = Safety + Guaranteed Growth