Find how a Fixed Index Annuity can help your retirement planning

What is a Fixed index Annuity?

A fixed index annuity is a fixed annuity that earns interest or provides benefits that are linked to the performance of a stock index (for example S&P500, NASDAQ or Dow). The value of the index might be tied to a stock or other index. One of the most commonly used indices is the Standard and Poor's 500 Composite Stock Price Index. The value of any index varies from day to day and is not predictable. When you buy a Fixed Index Annuity, you own an insurance contract. You are not buying shares of any stock or index.

This is an effective method to plan for retirement because it is a lower risk for you. With stocks you have an unlimited amount of returns that you can earn however investment in stocks puts you at a much higher risk. If the particular stock that you invest in happens to do poorly you risk losing all of the money that you have invested; however with a fixed index annuity this risk is eliminated.

Fixed Annuities offer you the advantage of gaining higher interest than a CD can offer and they also do not expose you to the risk that comes with investment in stocks. Annuity Rates can turn out to be much higher than a CD with as much if not more security for your money. If by chance the particular investment that you made with the fixed interest annuity is not doing well you still will never lose the initial money that you have invested. If you do not need the funds to start paying out immediately, you can take advantage of a deferred annuity. If you have more questions and need to have annuities explained further, feel free to contact us for a no obligation consultation. SafeMoneyAlternatives.com is the number one source to find the best annuity rates by one of our rated independent financial advisors.

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