How can you maintain a conservative investment approach while reaping potential benefits from financial markets? Fixed Indexed Annuities might be a great option for you. FIAs are tied to market performance, usually the S&P 500, and have higher returns than bonds, CDs and money market accounts most of the time. The point of an FIA is to exceed fixed market performance rather than beating the financial markets, like a variable annuity.
Your principal is safe from losses in the stock market and you also have the ability to benefit from stock market gains. A minimum interest rate is usually guaranteed by the issuing insurance company. Three benefits you usually receive like any fixed annuity are tax deferred growth, monthly income receipts, and a guaranteed minimum death benefit payment to your heirs. There is also no limit to how much you can contribute yearly, unlike IRAs and 401(k)s. Check with an expert to learn more about these and other benefits of fixed indexed annuities.