Indexed
Annuities
- A contract with an insurance company designed for long-term retirement savings.
- Interest earnings are linked to a market index, providing growth potential without direct market exposure.
- Principal protection ensures that the account value will not decrease even if the market performs poorly.
- Offers tax-deferred growth, meaning you don’t pay taxes on gains until you withdraw the money.
- Can be converted into a guaranteed stream of income for life during retirement.
- Often includes a death benefit for beneficiaries if the owner dies before annuitization.
- Bridges the gap between low-yield fixed annuities and high-risk variable annuities.
- Provides ‘downside protection’ while allowing for ‘upside participation’ in market gains.