Fixed Indexed Annuity

In principle a Fixed Indexed Annuity is considered a kind of Fixed Annuity. However, the Fixed Indexed Annuity differs from the typical Fixed Annuity by the way that earnings are credited.

With a Fixed Annuity the agreement guarantees a minimum interest rate. Focus is on safety of principal and a predictable return.

With a Fixed Indexed Annuity the agreement return is the greater of the annual minimum rate or the return of a market index.

The Investor is usually guaranteed to receive their principal minus fess, expenses, and withdrawals.
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