As the name suggests, with Fixed Index Annuities your money earns fixed rates of interest return. When you decide to take money out, you can elect to receive a guaranteed fixed payout every month. The relative newcomer in the category – the product we like to call “the better mousetrap” – is the Equity Indexed Annuity, or EIA. It pays a minimum fixed rate of return, and you might also earn interest based on a generally used stock market barometer such as the S&P 500? Index. While an EIA can limit upside potential returns, it does not subject your principal market risk.
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